On Tuesday, Baird, a financial services firm, increased the price target for Clean Harbors (NYSE:CLH) shares to $235 from the previous $192, while retaining an Outperform rating on the stock. The revision reflects the incorporation of the HEPACO acquisition into the company's financial estimates and the potential benefits from the new Environmental Protection Agency (EPA) standards for perfluoroalkyl and polyfluoroalkyl substances (PFAS) in drinking water.
The recent finalization of the EPA's drinking water standards for six PFAS contaminants is seen as a boon for Clean Harbors' newly introduced Total PFAS Solution. The firm believes that the management of PFAS, a group of man-made chemicals that have been in use since the 1940s, presents a significant opportunity for Clean Harbors over the next decade and beyond.
The HEPACO acquisition, which has been recently finalized, is now fully integrated into the company's financial projections. HEPACO is a leading provider of environmental and emergency response services, and its addition is expected to enhance Clean Harbors' service offerings.
Clean Harbors is known for its environmental, energy, and industrial services, including hazardous waste disposal and emergency response. The company's efforts to address PFAS contamination, which is a growing environmental concern due to the persistence and toxicity of these substances, aligns with broader regulatory trends and increasing demand for environmental safety measures.
The upgraded price target from Baird signals confidence in Clean Harbors' strategy and market position, particularly in light of the evolving regulatory landscape and the company's recent expansion through the HEPACO acquisition.
InvestingPro Insights
Following Baird's positive outlook on Clean Harbors, InvestingPro data underscores several aspects of the company's financial health and market performance. Clean Harbors boasts a market capitalization of $10.5 billion and a Price to Earnings (P/E) ratio of 27.62 for the last twelve months as of Q4 2023, reflecting investor confidence in its earnings potential. The company's revenue growth for the same period stands at 4.69%, indicating steady business expansion.
InvestingPro Tips highlight that Clean Harbors has a strong return over the last three months, with a 23.3% price total return, and has been profitable over the last twelve months. Moreover, the stock generally trades with low price volatility, which may appeal to investors looking for stable returns. For readers interested in deeper analysis, there are over 10 additional InvestingPro Tips available, offering a comprehensive look at Clean Harbors' financial metrics and market performance.
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