Oppenheimer analyst Noah Kaye notes Covanta's shares are off 10% quarter to date despite the company reaffirming 2016 guidance in August and a largely unchanged commodity outlook. While the analyst believes Covanta's management and board will likely decide to keep the dividend at current levels in 2017, he expects EBITDA and cash generation from the Dublin project, Manhattan MTS and other initiatives to decrease leverage and provide cushion for a 2018 dividend increase. Kaye sees the shares as an attractive yield play on the recent pullback, and reiterates an Outperform rating and $20 price target on the stock.