Wunderlich Reiterates Buy Rating on Canadian-based IESI-BFC (BIN)

Wunderlich reiterates its Buy rating on IESI-BFC BIN, noting that "BIN has a great business in Canada – it has density and the backdrop of very strong landfill pricing." IESI-BFC Ltd., formerly BFI Canada Ltd., is a waste management company. The company provides non-hazardous solid waste collection and disposal services to commercial, industrial, municipal and residential customers in 10 states and the District of Columbia in the United States and five provinces in Canada. Wunderlich maintains a $27 price target on the stock. Michael E. Hoffman of Wunderlich notes that "with the recent acquisitions, solid Canadian GDP supported by a robust natural resources economy, and the price and volume trends in Canada should be better than in the U.S. Frankly, the asset mix and economic backdrop in the U.S. is not as attractive as the Canadian mix and that remains the market's focus. Also this is the first period to see the margin and return impact of a couple of larger U.S. deals. Overhanging this are questions about margins in the U.S. compared to Canada." Shares of BIN gained more than 2.8% on Tuesday, to close at $25.85.