Wedbush Maintains Outperform on Republic Services

Wedbush is out with its report today on Republic Services RSG, reiterating Outperform. In a note to clients, Wedbush writes, "While our Q2 survey results point to relatively in-line core yield and volume growth expectations for RSG, we remain favorable on its shares given (i) financial and operational expectations remain low relative to that of other major industry peers, (ii) FY11 guidance, namely on core pricing, remains conservative and should benefit from improving CPI levels, and (iii) the company continues to generate significant free cash flow (FCF yield of ~8%) to not only pursue growth opportunities but also return value to shareholders via dividend increases and another share repurchase program anticipated later this year. Accordingly, we are maintaining our OUTPERFORM rating and would remain BUYERS of the stock." Wedbush maintains a $35 PT on RSG. Shares of RSG closed Friday at $31.28, down 1.17% from Thursday's close.