Wunderlich Maintains Buy on Waste Connections

Wunderlich is out with its report today on Waste Connections WCN, maintaining Buy. In a note to clients, Wunderlich writes, "We maintain our Buy rating and price target of $38 on shares of Waste Connections. WCN FY11 guidance calls for FCF of 16% of $1.5B in revenues or $240mm. YTD, WCN has produced FCF at nearly a 20% margin. At 16% margin for the full year 2H11, FCF margins would only be 13%. Keep in mind that cash taxes are greater in the 2H than the 1H. In addition, capital spending is budgeted at $135mm; YTD, WCN has spent $47mm." At the time of posting, shares of WCN were trading at $34.22, up 1.48% from Wednesday's close.