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Investing.com - Stifel has reduced its price target on Waste Connections Inc. (NYSE:WCN) to $218.00 from $221.00 while maintaining a Buy rating on the waste management company’s stock. Currently trading at $178.11, the company commands a market capitalization of $45.4 billion and has demonstrated consistent dividend growth, raising payouts for 9 consecutive years, according to InvestingPro data.
The price target adjustment follows Waste Connections’ third-quarter 2025 results, which Stifel noted were positive as the core business outperformed expectations. Despite the solid performance, the firm is tempering its expectations for 2026. The company maintains strong fundamentals with a 42% gross profit margin and 9.7% revenue growth in the last twelve months.
The modest reduction primarily stems from timing changes related to new renewable natural gas (RNG) projects rather than concerns about the company’s fundamental business outlook. Additional headwinds from recycled commodities prices also factored into the decision.
These timing shifts and commodity challenges have lowered Stifel’s outlook for margin expansion and free cash flow in 2026, resulting in the $3 reduction in target price based on discounted cash flow analysis.
Stifel maintains its medium-to-long-term view that Waste Connections can achieve mid-single-digit organic revenue growth, expanding to mid-to-high single digits with acquisitions, while growing adjusted EBITDA and free cash flow at a faster pace.
In other recent news, Waste Connections Inc . released its third-quarter 2025 financial results, which included a slight miss on earnings per share (EPS) but a beat on revenue expectations. The company reported an EPS of $1.35, falling short of the anticipated $1.38, representing a 2.17% miss. However, Waste Connections exceeded revenue forecasts by posting $2.46 billion, compared to the expected $2.45 billion. Following these results, UBS adjusted its price target for Waste Connections from $190 to $195, while maintaining a Neutral rating on the stock. These developments reflect a mixed performance, with revenue achievements counterbalancing the EPS shortfall. Despite the EPS miss, the company’s stock experienced a rise, suggesting investor confidence in Waste Connections’ strategic initiatives. Analysts from UBS have noted the company’s profitability aligns broadly with consensus expectations. These recent updates provide insights into Waste Connections’ current financial health and market position.
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