UBS downgrades Casella Waste Systems to Neutral and cuts price target to $95
UBS lowered its rating on Casella Waste Systems (CWST) from Buy to Neutral, reducing the price target from $122 to $95. The downgrade reflects a weaker earnings outlook due to reduced merger‑and‑acquisition activity, with UBS trimming its 2026‑30 EBITDA per share forecast by 7% and its target EV/EBITDA multiple to 14x from 17x. The firm also noted that despite beating Q2 2026 earnings and revenue expectations, margin pressure and fuel costs remain concerns. Activist investor Jana Partners has taken a stake in the company and is urging changes.
Why it matters
UBS’s lower price target and neutral rating may pressure CWST’s share price toward the $95 level. The reduced M&A outlook also signals slower growth, which could affect investors’ expectations for future earnings.
Key facts
- 1UBS changed its rating on CWST to Neutral from Buy. investing.com
- 2UBS cut the price target to $95 from $122. investing.com
- 3UBS lowered its target EV/EBITDA multiple to 14x from 17x. investing.com
- 4UBS expects the cumulative 2026‑30 EBITDA per share forecast to be reduced by 7%. investing.com
- 5CWST’s stock was trading at $93.07 with a market cap of $5.92 billion. investing.com
- 6Adjusted earnings for Q2 2026 were $0.40 per share, beating the $0.36 estimate. investing.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.