Jefferies Maintains Hold Rating on Casella Waste with $115.11 Price Target

Casella Waste (CWST) received a Hold rating from Jefferies, with a price target of $115.11. The company reported a quarterly revenue of $465.33 billion and a net profit of $5.21 billion, compared to last year's revenue of $377.16 million and net profit of $7.01 million. There has been an increase in corporate insiders selling their shares, with CEO John Casella selling 18,093 shares in May 2025 for $2,168,807.91.

Casella Waste Systems (CWST), a leading provider of waste management services, reported its Q2 2025 earnings, revealing a significant miss in earnings per share (EPS) compared to forecasts, despite a revenue beat. The company’s EPS came in at $0.08, falling short of the forecasted $0.33, a surprise of -75.76%. Revenue exceeded expectations, reaching $465.3 million against a forecast of $454.35 million. Following the earnings release, Casella’s stock dropped 6.14% in after-hours trading, closing at $108.73.

The quarter saw strong revenue growth, with a 23.4% increase year-over-year, and adjusted net income reported at $23 million or $0.36 per diluted share. The company completed six acquisitions, contributing $90 million in annualized revenue. Full-year revenue guidance was raised to a midpoint of $1.83 billion. Despite the EPS miss, Casella raised its full-year revenue guidance to a midpoint of $1.83 billion.

Casella’s stock has been trading above its Fair Value, with a current price of $108.73, down from its 52-week high of $121.24. The company maintains healthy liquidity with a current ratio of 1.96 and operates with moderate debt levels. Key risks include system conversion and truck delivery delays in the Mid-Atlantic integration, decline in recycling commodity prices, and potential supply chain disruptions.

The company expects $5-10 million in synergies from the Mid-Atlantic integration over the next few years. Executives highlighted the company’s strategic acquisitions and their alignment with Casella’s growth strategy. CEO John Casella emphasized the company’s strong performance and commitment to a cleaner, more sustainable future.

References:
[1] https://za.investing.com/news/transcripts/earnings-call-transcript-casella-waste-systems-q2-2025-results-disappoint-93CH-3816758