Scotiabank Raises PT on Waste Connections (WCN) Stock

Core Insights - Waste Connections, Inc. (NYSE:WCN) is identified as a strong investment opportunity by hedge funds, with Scotiabank upgrading its price target to "Outperform" at $208, citing improved relative valuation and confidence in future free cash flow conversion [1] - UBS has reduced its price target for Waste Connections to $190 from $205, maintaining a "Neutral" rating, indicating expectations of below-average performance in the Municipal Solid Waste sector for 2025 [2] - Chautauqua Capital Management noted that Waste Connections had a strong first quarter in 2025 but experienced a 9% decline in the second quarter due to investor disappointment over unchanged guidance, despite solid operational performance [3] Summary by Category Price Target Changes - Scotiabank raised the price target to $208 from "Sector Perform" to "Outperform" based on improved valuation and future cash flow confidence [1] - UBS lowered the price target to $190 from $205 while keeping a "Neutral" rating, reflecting concerns about 2025's performance [2] Performance Analysis - Waste Connections reported strong pricing in solid waste for Q1 2025, but shares fell 9% in Q2 after a 14% gain in Q1, attributed to management not raising guidance [3] - Recycled commodity prices dropped by 10%, although recycling only accounts for 2% of total revenues, indicating that overall operational performance remains strong [3]