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On Friday, TD Cowen analysts raised the price target for Casella Waste Systems (NASDAQ:CWST) stock to $135 from $130, while maintaining a Buy rating. Currently trading at $118.33 and near its 52-week high of $121.24, the stock has been identified as one of the "Best SMIDCap Ideas" by the firm. According to InvestingPro analysis, the company’s current valuation suggests it may be trading above its Fair Value.
The analysts highlighted that consensus revenue estimates often exclude mergers and acquisitions (M&A), which leads to conservative growth forecasts for Casella Waste Systems. They noted that forward multiples might appear artificially high under these circumstances. The firm’s revenue assumptions for 2026 to 2030 have been increased by 2-4%.
According to the analysts, Casella Waste Systems possesses significant potential for upside, particularly if M&A trends continue. They expressed confidence that the company’s 2025 estimates are overly conservative and anticipate an increase in full-year guidance during the second-quarter report.
The analysts pointed out that the company’s growth through M&A and its free cash flow durability in varying economic conditions make it an attractive investment. They also mentioned that recent challenges in landfill volume might have been resolved, contributing to a more positive outlook for Casella Waste Systems.
In other recent news, Casella Waste Systems reported a strong financial performance for the first quarter of 2025. The company exceeded expectations with earnings per share (EPS) of $0.19, significantly above the forecasted $0.03, and revenue reaching $417.1 million compared to the anticipated $404.02 million. This represents a 22.3% increase in revenue year-over-year. Despite these positive financial results, the company’s stock experienced a slight decline. Casella reaffirmed its 2025 financial guidance, maintaining pricing guidance at approximately 5%.
Jefferies recently updated its outlook on Casella Waste Systems, raising the price target from $113.00 to $118.00 while maintaining a Hold rating. This revision follows Casella’s earnings report, which showed revenue and EBITDA surpassing consensus estimates by approximately 3%. Jefferies analysts noted that Casella’s stock is trading at a higher valuation compared to its peers. The firm acknowledged the company’s solid performance but considers the stock fairly valued at its current levels. Casella’s ongoing mergers and acquisitions strategy, along with its pricing strategies, contributed to its recent financial success.
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