UPDATE: Wedbush Raises PT on Casella Waste Systems Ahead of Q1:FY14 Results

In a report published Friday, Wedbush analyst Al Kaschalk reiterated an Outperform rating on Casella Waste Systems CWST, and raised the price target from $5.50 to $6.00.

In the report, Wedbush noted, “Reiterate OUTPERFORM ahead of Q1:FY14 results and what we believe will be a strong start to FY14. We believe Casella Waste Systems (CWST) is a favorable risk/reward for investors looking for micro-cap turnaround story, with business fundamentals recovering from exposure to the broader US economic recovery based on the following key points: (i) EBITDA margin of 19-20% should benefit from incremental volumes, volume mix and acquisitions and margin could reach low- to mid-20% range over the next 1-2 years, (ii) improving competitive market pricing environment will benefit from stable to slightly higher landfill volumes, and (iii) achievable financial guidance that should benefit from what we believe are above plan start for the first four months of FY14.”

Casella Waste Systems closed on Thursday at $4.88.