Wunderlich On Covanta Holding After Fairfax County Debate

Wunderlich Securities has published a research report on Covanta Holding Corporation CVA after the company's public hearings concerning the Fairfax County WTE debate. In the report, Wunderlich writes "Covanta (CVA). Fairfax County, VA, has an option to buy its WTE plant from CVA for $417.5mm, or about 13.9x EBITDA. On Feb. 22, the Board of Supervisors (BOS) held a public hearing to receive feedback from country residents. Twenty-six speakers from the community and affected organizations were given time to provide comment on the proposed acquisition of the WTE facility. The next BOS meeting to discuss the purchase will be a closed door session on Mar. 8. A final decision requires a BOS vote and needs to occur before Apr. 4, unless the BOS negotiates additional time. CVA was present and spoke, focusing on the good relationship with the county." Wunderlich Securities maintains its Buy rating and $21 price target. Covanta Holding Corporation closed yesterday at $16.71.