Wunderlich Securities Reaffirms Casella Waste Systems Buy, $8.50 PT

Wunderlich Securities reaffirmed its Casella Waste Systems

Buy rating and $8.50 price target in a research report published today. In the report, Wunderlich Securities states, "We are reaffirming our Buy rating and our price target of $8.50 on Casella Waste (

) shares. Unshackle the FCF and the upside to the valuation is 2x to 3x from current levels. The questions of how can CWST do that and how fast are at the root of why this stock trades as low as it does. Margins, where can they go, and how quickly can CWST move the business model to that level of profitability? What is the FCF potential excluding the impact of managing the leverage and cost of the balance sheet lower? Can CWST grow its way out of this problem?" Shares of Casella Waste Systems were trading at $5.74 at the time of posting, up 4.94% from Friday's market close.