01:37 PM EDT, 08/16/2024 (MT Newswires) -- It was a good quarter for the Waste names in general (with some variation across the group), says RBC. The analysts believe the industry is well positioned to deliver on respective 2024 guidance metrics.

Core Price increases remain elevated compared to historical levels (reflecting elevated inflation/CPI prints over the recent quarters).

Volume growth was mixed across the Majors, with GFL and Waste Connections ( WCN ) continuing to focus on optimization/shedding of low-margin volumes. Looking ahead, a macro recovery could lead to a directional volume improvement for the sector as more cyclical volumes recover.

The Waste Majors are also benefiting from improved recycling commodity prices. Commentary from management teams in the space suggests that labor turnover continues to trend favorably, which RBC believes should be a positive contributor to margins/results on a go-forward basis.

Overall, margins were up across the group and RBC believes margins will continue to expand through H2/24 and into 2025 across its coverage. It adds that Waste Connections ( WCN ) continues to lead on this front.

GFL Environmental ( GFL ) is rated Outperform, with a US$48 target.

Waste Connections ( WCN ) is rated Outperform, with a US$199 target.

Price: 56.22, Change: -0.31, Percent Change: -0.55