Wunderlich Securities Raises WCA Waste Corporation Price Target

Wunderlich Securities said that it maintains its Hold rating on WCA Waste Corporation WCAA. At the same time, Wunderlich Securities is raising its price target to $5 from $4.50. “WCAA's 3Q results were below expectations but showed a return of pricing growth. WCAA appears on track to meet its FY10 revenue guidance of $225mm, but will need a very strong 4Q10 to achieve its EBITDA target of $55mm,” Wunderlich Securities writes. “The catalyst for a ratings change would be the return to positive free cash flow (FCF) growth and a clear path to deleverage the balance sheet to less than 3.5 times, treating the preferred as debt for this calculation, in our view.” WCA Waste Corporation currently trades at $4.99.