Scotiabank keeps Sector Outperform on Waste Connections and FirstService

what happened

Scotiabank kept its Sector Outperform call on two service companies, Waste Connections and FirstService. According to TradingView, citing Benzinga data, the bank's target for Waste Connections is $201, which points to a 22.4% gap below the October 22 close of $258.95.

For Waste Connections, the bank highlights a strong third quarter: EBITDA rose 8% to $896 million, revenue grew 7.3%, and the margin was the best for a third quarter since 2015. Management guided to mid- to high-single-digit top-line growth and double-digit free cash flow per share growth.

For FirstService, the target is $175, which is 15.1% below the $206.06 close. Backlog reached its highest level in the past year, particularly in reroofing, third-quarter revenue rose 7%, and the stock trades at about 12.6x EV/EBITDA for 2027, versus a historical average near 18x.

why it matters

For investors, the note is a signal about sector valuation: analysts see room for growth where revenue and margins hold up. Price targets reflect an analyst's view rather than a forecast of share prices, and actual moves will depend on broader market sentiment and upcoming earnings.

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