Wedbush Downgrades IESI-BFC, Ltd. (BIN) to Neutral; Slowing Canadian Economy & Competitive M&A Market Present Headwinds
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Price: $31.61 --0%
Rating Summary:
6 Buy, 10 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
6 Buy, 10 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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Wedbush downgraded IESI-BFC, Ltd. (NYSE: BIN) from Outperform to Neutral. PT cut by $1 to $27.
Wedbush analyst says, "Downgrade predicated on (i) signs of slowdown in Canadian economy, (ii) slowing M&A growth as focus shifts to repaying debt, and (iii) neutral risk/reward investment theme as shares now reflect expectations, in our view. While we acknowledge that the company remains disciplined on its pricing strategy and continues to generate solid FCF from the business, we are downgrading shares of BIN to NEUTRAL following the results from our waste survey which suggest growing signs of a slowdown in the Canadian economy as year/year volume growth continued to moderate in Q1. With the company likely to focus more on reducing leverage, M&A growth could slow in the near-term. As a result, we believe there is increased downside risk to current FY11/12 estimates and see shares of BIN as being fairly valued at current levels." (Lowers FY11 EPS estimate from $1.15 to $1.14 and FY12 from $1.26 to $1.22)
For more ratings news on IESI-BFC, Ltd. click here and for the rating history of IESI-BFC, Ltd. click here.
Shares of IESI-BFC, Ltd. closed at $25.64 yesterday.
Wedbush analyst says, "Downgrade predicated on (i) signs of slowdown in Canadian economy, (ii) slowing M&A growth as focus shifts to repaying debt, and (iii) neutral risk/reward investment theme as shares now reflect expectations, in our view. While we acknowledge that the company remains disciplined on its pricing strategy and continues to generate solid FCF from the business, we are downgrading shares of BIN to NEUTRAL following the results from our waste survey which suggest growing signs of a slowdown in the Canadian economy as year/year volume growth continued to moderate in Q1. With the company likely to focus more on reducing leverage, M&A growth could slow in the near-term. As a result, we believe there is increased downside risk to current FY11/12 estimates and see shares of BIN as being fairly valued at current levels." (Lowers FY11 EPS estimate from $1.15 to $1.14 and FY12 from $1.26 to $1.22)
For more ratings news on IESI-BFC, Ltd. click here and for the rating history of IESI-BFC, Ltd. click here.
Shares of IESI-BFC, Ltd. closed at $25.64 yesterday.
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