Wunderlich Reiterates Buy On Republic Services

Wunderlich Securities is out with a research report on Republic Services Inc.

and is reiterating its Buy rating and $37 price target on shares. In a note to clients, Wunderlich Securities writes, "We reiterate our Buy rating and price target of $37 on Republic Services (

). In 1Q11, weather created some pressure, reducing volume growth to negative 0.7% while core price growth remained positive at 1.0%. Volume growth probably does not turn positive in 2Q11. However, the improving trend should continue and pricing growth should be at or above 1Q11 levels. Price and volume trends should improve in 2H11 vs. 1H11 and combined with aggressive cost controls could help drive FCF to the high end of FY11's $875mm-$900mm guidance. This is the time when the dividend is increased; anything less than a 10% increase would be a disappointment, in our view." Shares of RSG are down 18 cents in early Wednesday trading to $29.63.