Wunderlich Securities Reiterates Buy Rating, $37 PT On RSG

Wunderlich Securities is reiterating its Buy rating and price target of $37 on Republic Services, Inc. RSG. “Over the long term, the details of internal revenue growth (IRG) matter but, in an economic transition period, it is more important that IRG is positive,” Wunderlich Securities writes. “Clearly there is more operating leverage from price than volume. Without a doubt, a tie goes to price when choosing which component of internal growth RSG would prefer. “In 3Q10, RSG's model on price should be a lot like 2Q10 and volume should be less negative with a narrowing toward zero. Like other solid waste companies, special waste volume is on the rise, construction volume is less negative, and MSW is flat, plus or minus a little bit on a same-store basis.” Republic Services closed Wednesday at $30.53.