Gold prices hold sharp gains as soft US jobs data fuels Fed rate cut bets
Tuesday, Truist Securities adjusted the price target for Clean Harbors (NYSE:CLH) shares, reducing it from $270.00 to $250.00, while maintaining a Buy rating on the stock. According to InvestingPro data, analyst targets for Clean Harbors currently range from $205 to $300, with the stock trading at $204.40. The firm’s analyst pointed out that recycling prices have remained stable, but there are risks associated with Clean Harbors, which maintains a GOOD financial health score despite trading above its Fair Value. The analyst noted that Old Corrugated Cardboard (OCC) pricing, which is a significant component in waste recycling, has not changed year-to-date from the end of 2024.
Within the solid waste sector, Waste Management (NYSE:WM) is highlighted as having the most significant contribution from recycling activities, accounting for approximately 9% of its revenue, which includes both solid waste recycling and Shred-It services. Clean Harbors, with its $11.08 billion market cap and robust revenue growth of 8.89% over the last twelve months, has demonstrated strong operational efficiency. The analyst mentioned that the OCC pricing has remained steady compared to February and that market outlooks should have already accounted for the potential weakness in recycled commodities prices.
The report further addressed the impact of the recent crude oil price drop, which has fallen by 9% since mid-February. This decline is expected to exert additional downward pressure on base oil pricing. The implications for Clean Harbors are particularly relevant for their Safety-Kleen Sustainability Solutions (SKSS) segment, which represents around 10% of the company’s adjusted EBITDA.
The analyst expressed concern that Clean Harbors will be managing higher cost inventory within the SKSS segment during the first quarter, and that continued decreases in oil pricing could jeopardize the segment’s guidance for 2025 once more. This detailed analysis comes as the company prepares to navigate the ongoing challenges in the recycling and waste management industry amid fluctuating commodity prices.
In other recent news, Clean Harbors has seen several significant developments. Moody’s Ratings upgraded Clean Harbors’ corporate family rating to Ba1 from Ba2, reflecting expectations of improved credit metrics driven by earnings growth in the environmental services segment. This upgrade is supported by the company’s cost discipline, acquisition synergies, and strong free cash flow. UBS adjusted its price target for Clean Harbors to $240 from $250, maintaining a Neutral rating, following the company’s fourth-quarter financial results, which showed a 2% higher adjusted EBITDA than consensus expectations. Stifel also revised its price target to $285 from $290, keeping a Buy rating, citing the company’s strong fourth-quarter results but cautious guidance for fiscal year 2025. TD Cowen lowered its price target to $300 from $325, maintaining a Buy rating, noting the impact of winter weather conditions on the company’s first-quarter forecast. Lastly, Oppenheimer adjusted its price target to $254 from $256, maintaining an Outperform rating, highlighting Clean Harbors’ potential for shareholder value creation through capital allocation and a conservative fiscal year 2025 guidance. These recent developments underscore the company’s ongoing financial performance and strategic positioning.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.