Update (9:40 a.m.): Updated with Wednesday market open information.
NEW YORK (TheStreet) -- Robert W. Baird upgraded Covanta Holding Corp. (CVA) to "outperform" from "neutral" and set a $21 target price. The firm noted the energy company's New York City contract should boost growth in the second half of the year.
The stock was up 3.63% to $17.85 at 9:38 a.m. on Wednesday.
Must Read: Warren Buffett's 10 Favorite StocksSTOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. ---------- Separately, TheStreet Ratings team rates COVANTA HOLDING CORP as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation: "We rate COVANTA HOLDING CORP (CVA) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated." Highlights from the analysis by TheStreet Ratings Team goes as follows:
- 38.39% is the gross profit margin for COVANTA HOLDING CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 6.63% is above that of the industry average.
- COVANTA HOLDING CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, COVANTA HOLDING CORP reported lower earnings of $0.35 versus $0.87 in the prior year. This year, the market expects an improvement in earnings ($0.40 versus $0.35).
- CVA, with its decline in revenue, slightly underperformed the industry average of 6.8%. Since the same quarter one year prior, revenues slightly dropped by 1.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The change in net income from the same quarter one year ago has significantly exceeded that of the Commercial Services & Supplies industry average, but is less than that of the S&P 500. The net income has significantly decreased by 65.8% when compared to the same quarter one year ago, falling from $82.00 million to $28.00 million.
- You can view the full analysis from the report here: CVA Ratings Report
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