Wunderlich Securities Reiterates Covanta Holding Buy Rating, $21 PT (CVA)

Wunderlich Securities reiterated its Covanta Holding CVA Buy rating and $21 price target in a research report published today. In the report, Wunderlich Securities states, "The market can struggle valuing very long-term assets and contracts like waste-to-energy facilities. The issue is that the cash flows associated with these assets are based on many assumptions that will take decades to be fully realized. While an NPV can be calculated, it is seldom backed up by cold hard cash. However, an asset sale does just that and therefore should give the market a fair proxy for the real value of these assets. Fairfax County, VA currently has the option to purchase its WTE facility from CVA for $417.5mm, an estimated 16.8x EBITDA." Shares of Covanta Holding closed Thursday at $17.00, up 0.47% from Wednesday's market close.