Oppenheimer analyst Noah Kaye upgraded Waste Connections (WCN), Waste Management (WM) and Republic Services (RSG) to Outperform from Perform. In a research note to investors, Kaye says his previous concerns regarding commodity headwinds have diminished after recent results and commentary from Q4 earnings and meetings with management that suggest healthy near-term solid waste fundamentals. Should economic weakness transpire, Kaye expects waste fundamentals to outperform industrial benchmarks on the strength of pricing discipline, margin resiliency, healthy free cash flow generation and opportunistic M&A.

Oppenheimer raised the firm's price target on Republic Services to $204 from $202 and keeps an Outperform rating on the shares. The firm notes Republic Service reported Q1 adjusted EBITDA/EPS above consensus estimates as stronger price and margin performance more than offset volume headwinds.

CIBC analyst Kevin Chiang raised the firm's price target on WM to $220 from $207 and keeps a Neutral rating on the shares. The company reported a Q1 beat with all metrics coming in ahead of expectations, the analyst tells investors in a research note. The firm's main takeaway on the back of these results is that WM has reset its margins higher.

TD Cowen analyst James Schumm raised the firm's price target on WM to $235 from $220 and keeps a Buy rating on the shares. The firm said they posted their third straight beat driven by impressive efficiency/cost control measures despite a top line revenue miss. Cowen sees continued operational improvements in 2024.