On Thursday, Oppenheimer reiterated its Outperform rating and $216.00 price target for Waste Connections Inc . (NYSE:WCN) stock. The firm’s analysts maintained their positive stance following the company’s first-quarter financial results, which surpassed expectations on both revenue and earnings. With a current market capitalization of $50.8 billion and trading near its 52-week high of $201.66, InvestingPro analysis suggests the stock is currently trading above its Fair Value. Despite a seasonal forecast for the second quarter that is below the first quarter, Waste Connections confirmed its full-year 2025 outlook aligns with current consensus estimates.
Waste Connections’ performance remained steady on Thursday after the company reported its first-quarter results. The company, which generated revenue of $9.07 billion with impressive growth of 10.75% over the last twelve months, continues to show strong momentum. Analysts noted that, despite broader economic challenges, the company is poised for a stronger second half of the year. This optimism is based on recovering from weather-related setbacks that affected the first quarter by approximately 0.5%, as well as anticipated improvements from the Chiquita acquisition and the impact of commodities and foreign exchange.
The company’s ability to retain pricing, which improved sequentially in the quarter, was highlighted as a reflection of internal improvements, including reduced employee turnover. With unit cost inflation running between 4% and 4.5%, analysts suggest there could be potential upside to the company’s second-quarter and full-year margin guidance. InvestingPro data reveals that Waste Connections has raised its dividend for 9 consecutive years, demonstrating consistent shareholder returns alongside its strong operational performance. Get access to 12 more exclusive InvestingPro Tips and comprehensive analysis in the Pro Research Report.
Additionally, Waste Connections’ management provided encouraging remarks regarding merger and acquisition (M&A) activity. The company is on track to significantly surpass its average level of M&A activity for the year, which was received as an incremental positive by the analysts. In light of these factors, Oppenheimer has adjusted its estimates for Waste Connections while maintaining the $216 price target for the company’s stock.
In other recent news, Waste Connections reported its first-quarter 2025 results, surpassing analyst expectations. The company achieved adjusted earnings per share of $1.13, exceeding the projected $1.08, and recorded revenue of $2.23 billion, slightly above the consensus estimate. Waste Connections’ adjusted EBITDA increased to $712.2 million, reflecting a 9.5% year-over-year growth. The company attributed this performance to organic solid waste growth and ongoing acquisition activities. Additionally, Waste Connections projected second-quarter revenue to range between $2.375 billion and $2.400 billion, with expected net income between $281.0 million and $285.5 million. Moody’s Ratings recently upgraded Waste Connections’ senior unsecured rating to A3 from Baa1, with a stable outlook, citing strong operating performance and robust cash flow. The company anticipates maintaining a healthy free cash flow of over $900 million annually, which could fund acquisitions or debt repayment. Waste Connections has also completed acquisitions with annualized revenues exceeding $125 million, including a new recycling facility in New Jersey.
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