The Globe and Mail reports in its Tuesday, Oct. 3, edition that ahead of third quarter earnings season, RBC Capital Markets analyst Walter Spracklin thinks the North American waste sector is "screening good value." The Globe's David Leeder writes in the Eye On Equities column that Mr. Spracklin, in a research report released Monday, left his estimates across the sector largely unchanged ahead of quarterly releases. After introducing his 2025 financial projections, Mr. Spracklin adjusted his share target for GFL Environmental to $45 from $43 (all figures U.S.). He continues to rate GFL "outperform." Analysts on average target the shares at $41.60. Mr. Spracklin says GFL is one of two preferred names in the sector. The other is Waste Connections. Mr. Spracklin says in a note: "GFL has underperformed its peers this quarter, though it has outperformed year-to-date as the company executed on its plan to de-lever significantly and slow down major acquisitions to focus on integration. We see further upside given the recent pullback from: 1) unadjusted FCF infection expected in 2023, 2) further deleveraging via FCF inflection, and 3) margin enhancement opportunities via densification and cost-saving initiatives."
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