UPDATE: J.P. Morgan Raises PT on Republic Services to $35.50 (RSG)

J.P. Morgan is out with its report today on Republic Services RSG, raising its PT from $35 to $35.50. In a note to clients, J.P. Morgan writes, "We rate RSG Overweight. RSG shares trade at 7.1x 11E EV/EBITDA, a 4% discount to the group, which we view as attractive given the company's strong execution capabilities, synergy-driven earnings growth potential, and manageable debt burden. The company has demonstrated considerable success with the integration of Allied Waste, and we think it will continue to generate further margin expansion via pricing initiatives and operating discipline. RSG's 2011E cash yield (6.5%) is attractive by industry standards, and the dividend (2.5% yield) should help limit any potential downside in the shares. Our revised December 2011 price target of $35.50 (raised from $35.00 on our new estimates) is based on a 7.5x target multiple applied to our 2012 EBITDA estimate, a discount to its historical average (of ~8x), reflecting the still-uncertain macro environment." Shares of RSG closed Thursday at $30.96, up 1.08% from Wednesday's close.