Casella Waste Systems Reports Ongoing Process To De-Lever Balance Sheet

According to Wunderlich Securities, Casella Waste Systems CWST reported ongoing progress to de-lever its balance sheet. Wunderlich Securities reported that Casella Waste Systems reaffirmed its Buy rating and price target of $10.00. “In our view, leverage of 3.5 times is an interesting milestone but not a stopping point. To fully maximize the value transfer from the debt holders to the equity holders, CWST needs leverage to be at 2.5-3.0 times. To achieve this target, debt has to be about $330mm on $120mm of adjusted EBITDA. FCF in 2012 on the current balance sheet could reach $20mm to $25mm. Clearly, FCF from operations cannot drive leverage to the ideal level alone.” Casella Waste Systems closed yesterday at $7.48.