Potential Upside in Waste to Energy

Wunderlich Securities has published its research report regarding the production of waste to energy. Wunderlich believes there is high potential in this growing field. Wunderlich writes, "In 2008, the WTE market was valued at $20B.This market is expected to grow at a CAGR of 6.7% and reach $26.2B in 2014. The 2008 geographical breakdown shows Europe is the largest market (48%) followed by Asia (31%), North America (11%), and rest of the world (ROW) at 10%." According to their research Wunderlich also believes that more than 300 WTE plants could be put into production within the next decade. In North America Covanta Holding Corporation CVA is the largest WTE player. CVA currently has a Buy rating and is trading at $15.70.