Wedbush Maintains Rating, PT On CWST

Wedbush is maintaining its Outperform rating and its $10 price target on Casella Waste Systems CWST following the company's weak Q4 results. Says Wedbush, in its report, “While our thesis on Casella Waste (CWST) is under review, we are currently maintaining our OUTPERFORM rating on the stock following anticipated weak Q4 results. As we noted in our earnings preview on May 19, 2011, adverse weather conditions in the Northeast impacted the company's core operations, namely on volume growth in both the Solid Waste Operations (SWO) and Recycling Operations and on margins across the business. However, we remain encouraged by (i) the better-than-expected core pricing environment in the company's core segments and (ii) the company's FY12 in-line guidance, which hints at a degree of conservatism despite a modest FCF outlook. As a result and barring any significant macroeconomic drag on the broader markets, we expect the stock to open flat to modestly lower ahead of its scheduled earnings call tomorrow morning but we would remain BUYERS of the stock in the near-term as the operational recovery should drive margins and FCF above the initial FY12 guidance.” CWST closed at $5.82 yesterday.