Analyst Ratings February 19, 2026

TD Cowen Lifts Clean Harbors Valuation, Cites Restarted M&A Engine as Upside Driver

Analyst boosts price target to $320 on DCF revision and modest EBITDA upgrades; other firms also raise targets after strong quarterly results

By Derek Hwang CLH
TD Cowen Lifts Clean Harbors Valuation, Cites Restarted M&A Engine as Upside Driver
CLH

TD Cowen increased its price target on Clean Harbors (CLH) to $320 from $275 while keeping a Buy rating, citing a lower discount rate in its DCF model and modest upward revisions to 2026-2030 EBITDA. The firm highlighted a restarted M&A pipeline as a potential source of additional upside later in 2026. Recent quarterly results prompted other brokerages to raise their targets as well.

Key Points

  • TD Cowen raised its price target on Clean Harbors to $320 from $275 and maintained a Buy rating, implying about 16% upside from current levels.
  • The firm increased its 2026-2030 EBITDA estimates by an average of 1% and lowered the DCF model's WACC to 8.5% from 9%, underpinning the new target.
  • Multiple brokerages raised their targets after Clean Harbors reported better-than-expected fourth-quarter revenue of $1.5 billion and EPS of $1.62, supporting positive sentiment in environmental services and industrial services sectors.

TD Cowen has raised its price target on Clean Harbors (NYSE:CLH) to $320, up from $275, while retaining a Buy rating on the stock. The firm’s revised valuation accompanies slight increases to its medium-term earnings projections and a lower discount rate in its valuation model.

At the time of the note, Clean Harbors shares were trading at $280.41, about 0.97% below the 52-week high of $286.44. The stock has gained 17.81% year-to-date, reflecting continued market momentum.

TD Cowen raised its 2026-2030 EBITDA estimates by an average of 1%. The new price target rests on a discounted cash flow model that applies an 8.5% weighted average cost of capital, down from 9% previously. The firm also noted that Clean Harbors currently trades at a price-to-earnings ratio of 36.96, a level highlighted by InvestingPro data and consistent with TD Cowen’s observation of elevated valuation multiples.

Concerning corporate guidance, TD Cowen stated that Clean Harbors’ 2026 guidance was broadly in line with expectations but appears conservative, and the firm flagged that the company’s merger and acquisition growth engine has restarted. TD Cowen expects that M&A activity could provide further upside to estimates later in 2026.

On an enterprise value to EBITDA basis, TD Cowen values Clean Harbors at 13.3 times its estimated 2026 EBITDA and 12.2 times its estimated 2027 EBITDA. The firm added that a sizable valuation gap persists between the public stock and comparable private-market transactions. TD Cowen’s price target implies roughly 16% potential upside from the then-current share price.

Clean Harbors’ recent fourth-quarter results lent support to the positive analyst reception. The company reported revenue of $1.5 billion, above the consensus estimate of $1.47 billion, and delivered earnings per share of $1.62, modestly ahead of the projected $1.61.

Following the quarterly report, several brokerages adjusted their targets upward. Needham raised its price target to $308 while maintaining a Buy rating and highlighting strong performance in the Environmental Services business. Oppenheimer increased its target to $300, citing the company’s guidance for fiscal year 2026 net income and free cash flow midpoints that sit above market expectations. BMO Capital raised its target to $310, pointing to positive demand outlooks and the company’s execution and cost controls. Collectively, these moves reflect an overall positive analyst tone toward Clean Harbors’ near-term prospects.


Note: The article presents analyst views and reported company results as described in the firms' communications.

Risks

  • High valuation multiples: Clean Harbors trades at a P/E of 36.96, indicating rich valuation that could pressure returns if earnings do not meet elevated expectations - impacts equity investors and valuations in the industrial services sector.
  • Valuation gap versus private transactions: TD Cowen highlighted a large gap between the public stock valuation and private-market deal metrics, which could complicate valuation comparisons and M&A pricing - impacts M&A activity and deal financing in the environmental services market.
  • M&A-dependent upside uncertainty: The firm suggested that restarted merger and acquisition activity could boost estimates later in 2026, implying that some upside depends on successful deal execution and integration - impacts M&A outcomes and strategic growth assumptions.

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