Waste Connections downgraded to Peer Perform from Outperform at Wolfe Research

Wolfe Research downgraded Waste Connections to Peer Perform from Outperform and removed the firm’s prior $146 price target. Investors may have overly shrugged off the potential hit from the elevated temperature landfill incident at Chiquita Canyon Landfill, which management detailed with Q3 results, but based on precedent, necessary spending could last years and include added costs such as soil remediation, the analyst tells investors. The analyst, who assigns a total likely hit of $150M-250M over three years, noted that management may ringfence the liability, which could prompt EBITDA downgrades.