Morgan Stanley Reiterates Overweight on Republic Services (RSG)

Morgan Stanley is out with its report today on Republic Services RSG, reiterating Overweight. In a note to clients, Morgan Stanley writes, "We spent three days meeting investors with Republic Services and believe 2011 will be a year of positive volume growth, increased pricing power, opportunistic debt refinancing, rapidly expanding cash EPS and share buybacks. Recent liquidations / distributions by Blackstone and Berkshire Hathaway are unrelated to the fundamental outlook and create an attractive buying opportunity, with RSG shares now the cheapest among the waste services peers and with the company poised to generate $900 million in free cash flow this year. We reiterate our Overweight rating." Morgan Stanley maintains a $38 PT on RSG. Shares of RSG closed Friday at $29.87, up 1.05% from Thursday's close.