Waste Connections (WCN) remains well-positioned for 2026 with current guidance appearing "conservative" given the strong start to the year, RBC Capital Markets said Thursday in a report.

The company reported Q1 adjusted EBITDA and EPS ahead of market expectations and reaffirmed its 2026 outlook, with potential for gains from higher commodity prices, a more supportive macro backdrop and a robust pipeline for mergers and acquisitions, the report said.

Waste Connections is projecting 2026 revenue of $9.9 billion to $9.95 billion, adjusted EBITDA of $3.3 billion to $3.325 billion and adjusted free cash flow of $1.3 billion, the report said.

The company's strategy centers on "market selection, strategic asset positioning and local execution," driving long-term outperformance versus peers, RBC said. "We believe this strong track record justifies Waste Connections' premium valuation."

RBC raised its price target on Waste Connections stock to $218 from $210 and reiterated its outperform rating.

Price: 166.68, Change: -2.21, Percent Change: -1.31