Wedbush Starts WCA Waste Corp. (WCAA) at Neutral, Organic Growth & Debt Weigh on Stocks
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Price: $6.49 --0%
Rating Summary:
0 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 9
Rating Summary:
0 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 9
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Wedbush initiates coverage on shares of WCA Waste Corp. (NASDAQ: WCAA) with a Neutral rating and $4.50 price target.
The firm notes that its Neutral rating reflects the company's financial performance which largely depends on a strong recovery in C&D volumes. Wedbush also points out that management has been hesitant to invest in growth opportunities while continuing to improve its operational performance.
Wedbush believes that WCAA will continue to use smaller acquisitions for growth and will also use some of its capital to lower its level of debt. The company's large amount of debt continues to pressure the stocks price.
An analyst at Wedbush comments, "with asset sales being unlikely, we believe the company will need to raise additional equity to accelerate the deleveraging process and reach its goal of 3.5x by Q2:12."
The firm released its 2011 and 2012 EPS estimates at ($0.04) and $0.07. Revenue for the two years is expected to be $270.8 million and $276.1 million.
Shares of WCAA are trading down today $0.09 or 2.13 percent to $4.13.
For more ratings news on WCA Waste Corp. click here and for the rating history of WCA Waste Corp. click here.
Shares of WCA Waste Corp. closed at $4.22 yesterday.
The firm notes that its Neutral rating reflects the company's financial performance which largely depends on a strong recovery in C&D volumes. Wedbush also points out that management has been hesitant to invest in growth opportunities while continuing to improve its operational performance.
Wedbush believes that WCAA will continue to use smaller acquisitions for growth and will also use some of its capital to lower its level of debt. The company's large amount of debt continues to pressure the stocks price.
An analyst at Wedbush comments, "with asset sales being unlikely, we believe the company will need to raise additional equity to accelerate the deleveraging process and reach its goal of 3.5x by Q2:12."
The firm released its 2011 and 2012 EPS estimates at ($0.04) and $0.07. Revenue for the two years is expected to be $270.8 million and $276.1 million.
Shares of WCAA are trading down today $0.09 or 2.13 percent to $4.13.
For more ratings news on WCA Waste Corp. click here and for the rating history of WCA Waste Corp. click here.
Shares of WCA Waste Corp. closed at $4.22 yesterday.
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