Wedbush Morgan Securities started covering Clean Harbors (CLHB) on Wednesday with a buy opinion and a $29 12-month price target.
Analyst Al Kaschalk thinks the waste removal company is well positioned to build on its estimated 20% share of the hazardous waste market. The company's efforts to streamline its operations and refinance debt should lead to improved operating and net margins, Kaschalk said. The analyst sees the company saving about $30 million over the next 12 to 18 months. Clean Harbor expects to refinance its credit facility within the next 6 months, which might lead to 6 to 7 cents per per share in cost savings and would add upside to Kaschalk's earnings estimates. The analysts currently sees 2005 earnings per share of $1.41 on $681 million in revenue, and 2006 earnings per share of $1.55 on $714.6 million in revenue.