UPDATE: Wedbush Downgrades Republic Services; Challenges on Growth, Pricing

Wedbush lowers its rating on Republic Services

from Outperform to Neutral and lowers its price target from $31 to $29 as volume growth and price competition provide challenges. Wedbush comments, "Downgrading to NEUTRAL as lack of volume and competitive pricing reset our margin expansion investment theme for the next 12-18 months. We are downgrading shares of Republic Services (RSG) to NEUTRAL from OUTPERFORM as the challenging Q1:12 results and reduced outlook could continue. Our downgrade is predicated on: (i) Replacement/retention pricing is negative; (ii) Customer churn has increased and remains elevated; and (iii) Economic activity suggests flat volume story." RSG closed at $26.72 on Friday.