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Waste Connections (NYSE:WCN) late Wednesday was downgraded to Neutral from a previous investment rating of Buy among analysts at financial-services firm UBS.
They said the 28% increase in the trash-collection and recycling company’s stock in the past three months has raised its valuation multiples and limited the likelihood of further gains.
“We continue to like Waste Connections’ (WCN) business model, but see declining inflation as a headwind to core pricing growth in 2024-25,” Jon Windham, analyst at UBS, said in a February 28 report.
UBS raised its price target on Waste Connections (WCN) to $181 a share from $170 a share, based on an estimated enterprise value that’s 17 times earnings before interest, taxes, depreciation and amortization for 2025.
“The pace of Waste Connections’ (WCN) 2024-25 acquisitions is the most likely fundamental risk to our earnings estimates and stock recommendation,” according to UBS.