Stifel initiates Secure Waste Infrastructure with Buy, C$18 target

On Thursday, Secure Waste Infrastructure Corp (SES:CN) (OTC: SECYF) received a new Buy rating from Stifel Canada, accompanied by a price target set at C$18.00. The firm’s initiation of coverage on the waste management company highlights several key strengths, including what Stifel refers to as a "crown jewel asset" in its network of waste processing and disposal facilities. According to InvestingPro data, the company currently trades at a P/E ratio of 18.2x and has demonstrated strong market performance with a 34% return over the past year.

Stifel’s analysis points to robust earnings growth for Secure Waste Infrastructure, projecting a compound annual growth rate (CAGR) for earnings per share (EPS) of 16% between 2024 and 2026. This optimistic outlook is further supported by the firm’s belief that the company’s stock is relatively undervalued compared to its peers. The company’s financial health appears solid, with InvestingPro analysis showing a healthy EBITDA of $289 million and a strong return on equity of 16%.

Despite the positive rating, Stifel also notes some potential challenges for Secure Waste Infrastructure. The firm anticipates a re-rating of the company’s stock over a medium-term horizon. Additionally, there are uncertainties surrounding the company’s inorganic growth strategy, with Stifel describing it as not well-defined, which introduces a level of unpredictability despite the company’s strong balance sheet.

The analyst’s remarks underscore the dual nature of Secure Waste Infrastructure’s current position—on one hand, boasting significant assets and growth potential, and on the other, facing certain strategic ambiguities that could affect its trajectory.

The price target of C$18.00 set by Stifel represents their confidence in the company’s value and prospects. This new coverage and price target may influence investor interest and market activity for Secure Waste Infrastructure shares in the Canadian and over-the-counter markets.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.