June 30, 2017 / 3:14 PM / a year ago

BUZZ-One man's trash - BMO initiates coverage of environmental svcs

** BMO initiates coverage of environmental services with focus on environmental consulting/engineering/testing, waste management/cleanup and wastewater treatment

** Analyst Jeffrey M. Silber cites stable growth, good operating leverage, strong FCF, industry consolidation as positive industry factors

** Adds exposure to recycling and energy prices could lead to volatility; commodity prices can affect recycling margins and cos with waste-to-energy facilities are vulnerable to energy prices

** Silber believes Trump administration’s “good for business, bad for the environment” policies are generally positive for the sector, but EPA regulatory rollback could adversely affect cos that serve changing power needs and hazardous waste cleanup

** In separate notes, starts Clean Harbors, Republic Services, Waste Management at outperform, PTs of $65, $71 and $81, respectively

** Begins Covanta Holding, US Ecology and Stericycle at market perform; PTs of $16, $54 and $81, respectively

** CLH up over 3 pct, RSG up 1 pct, WM up 1 pct, CVA flat, ECOL down more than 3 pct, SRCL flat in early Fri trading

** Meanwhile, thinly traded VanEck Vectors Environmental Services ETF has risen 5.1 pct YTD (Stephen Culp)

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