Wedbush Initiates Coverage On Heckmann At Neutral

According to Wedbush, Heckmann HEK coverage is initiated at Neutral. Wedbush reported that HEK appears to have found its way in the water business given a significant management addition, the completion of its 50 mile pipeline and a $64 million acquisition of a produced water transportation and service company. “We believe this marks a significant strategic change, positioning the company for growth. In valuing these shares, we look at peer group multiples as well as our DCF model. Given that much of the company's growth depends on acquisitions, we believe TEV/EBITDA multiples are more appropriate. Furthermore, given the dramatic increase in EBITDA, we suggest using the peer group multiple of 7.5x 2012E EBITDA, or 2013E discounted back by 10%, to arrive at a 12-month price target of $6.00. We initiate coverage with a NEUTRAL rating.” Heckmann closed yesterday at $6.47.