Waste Connections resumed with a Sector Perform at Scotiabank

Scotiabank started coverage of Waste Connections (WCN) with a Sector Perform rating and $196 price target as the firm resumed coverage on five leading North American environmental services companies. While the firm has a positive thesis on the sector, it is “also mindful of some key risks,” including the potential for compression in valuation multiples given they are rich in a historical context, the analyst tells investors. The firm likes various attributes of the larger waste management companies – Republic Services (RSG), Waste Connections (WCN) and WM (WM) – though says it is taking a neutral view on them due to either “expensive valuations.”