Wedbush Reiterates Outperform On Clean Harbors (CLH): "Leading Environmental Clean Up Company"

Wedbush reiterated its Outperform rating on Clean Harbors (CLH) and raised the price target from $72 to $76. The firm calls Clean Harbors “A leading emergency response/environmental clean-up company” in regards to the crisis in the Gulf of Mexico. Hat tip to Street Insider for the following analyst comments:

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The firm remains “confident in the long run investment thesis”, as gradual improvement in “economic activities is driving improved asset utilization in the company’s core/legacy assets” and anticipates the company will continue the clean up efforts in the Gulf of Mexico for several months after capping. However, there is risk considering the amount billed per day will drop in Q3:10 as the event should not last forever.  They believe the Gulf oil spill could contribute $180 million in revenues in 2010, including $97 million in Q2. The firm adjusts 2010 EPS estimates to $3.01.

Technically, CLH remains very strong but in need of a pull back after retesting 2010 highs quickly.  An entry around the $60 level provided an ideal entry, but in my opinion further gains will be limited in the coming weeks while the stock digests recent gains.  I recently sold a position around the $70 level and will look for a place to get back in.  A return to around $62 – $65 on low sell volume would be an ideal re-entry point.  Shares are off about 1% today.

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