Barclays Initiates Clean Harbors at Overweight, US Ecology At Equalweight

Barclay's Jon Windham initiated Clean Harbors CLH at Overweight and US EcologyECOL at Equal Weight with price targets of $58.00 and $48.00 respectively. Windham praised the specialty waste sector's ability to offer "a stable earnings base from regulated hazardous waste disposal… and a service business exposed to a recovery in oil prices and industrial production." Clean Harbors has upside potential due to an "expected recover in its oil-related business" while US Ecology is already "fairly valued" said the analyst. Clean Harbor's positive outlook has a lot to do with Barclay's $60.00/bbl crude oil price target for 2017 which would result in a "+21% year over ear 2017 Ebitda growth per share" according to Windham. Although US Ecology's "unique asset base of hazardous waste landfills provides a foundation for long-term reliable earnings," Barclay's view "shares as currently fairly valued." At the time of writing Clean Harbors was trading at $48.35 and US Ecology at $42.53.