Wunderlich Has Buy On Covanta Holding (CVA)

Wunderlich Securities has a Buy rating and a $21 price target on shares of Covanta Holding Corporation

. In a note to clients, Wunderlich writes, "We reiterate our Buy rating and $21 target on Covanta (

) shares. The company's 4Q10 results and 2011 outlook need to bring added credibility to CVA's new capital allocation philosophy – growth is a core focus but not mindlessly. Therefore, excess cash should be returned to shareholders until growth dictates a need for it. In addition, understanding the annual ups and downs of the company's FCF requires more transparency around project debt. Any and all efforts to this end should translate into shareholder value and support our Buy rating and $21 price target." Shares of CVA lost 16 cents yesterday to close at $17.38, a gain of 0.9%.