Truist Securities has reaffirmed its 'Buy' rating on shares of Clean Harbors, the American environmental and waste management company, pointing to a supportive outlook for crude oil markets. The investment bank's analysts noted that higher oil prices and sustained drilling activity are likely to boost demand for Clean Harbors' disposal and recycling services, particularly in the energy sector.
Clean Harbors, headquartered in Norwell, Massachusetts, provides hazardous waste disposal, oil re-refining, and industrial services. The company's performance is closely tied to the health of the oil and gas industry, as it handles waste from drilling operations and refines used motor oil into base lubricants. Truist's analysis suggests that the current oil price environment, with Brent crude trading above $80 per barrel, supports continued investment in production and, consequently, demand for environmental services.
The reaffirmation comes as Clean Harbors prepares to report its quarterly earnings. The stock has gained roughly 15% year-to-date, outperforming the broader S&P 500 index. Truist's price target implies further upside of around 12% from current levels, according to market data. The bank's analysts emphasised the company's strong pricing power and its ability to pass on higher costs to customers.
For UK investors, the rating decision provides a lens into the global environmental services sector. While Clean Harbors is not listed on the London Stock Exchange, its performance often correlates with UK-listed peers such as Renewi, Grundon, and Tradebe. A bullish view from a major US bank can influence sentiment across the Atlantic, particularly for fund managers with exposure to North American equities through pension portfolios.
Analysts at Truist also pointed to Clean Harbors' growing safety-kleen segment, which collects and re-refines used oil, as a key growth driver. The division benefits from regulatory tailwinds in the US and Europe that encourage recycling over incineration. However, the bank cautioned that a sharp downturn in oil prices could reduce drilling activity and weigh on the company's revenue from upstream oilfield services.
Source: Truist Securities research note.