UPDATE: Wedbush Securities Reiterates Outperform Rating, Lowers PT on Casella Waste Systems

In a report published Monday, Wedbush Securities reiterated its Outperform rating on Casella Waste Systems

, but slightly lowered its price target from $8.00 to $7.00. Wedbush noted, “We are maintaining our positive stance on shares of Casella Waste (CWST) following the company's announcement on Friday, August 10 that it was realigning its operations, lowering its cost structure and cutting its FY13 guidance. Despite the 10% decline in the stock price on Friday's announcement, the cut to FY13 financial outlook was not material as revenues and EBTIDA were lowered 1.5% and 2.8%, respectively assuming mid-point of guidance ranges. With special waste volumes down for the past 15 months, management announced a realignment of its operations including its management structure. And while growth in recycling operations remains critical, recycled commodity prices continue to experience downward pressure as growth rates in Asia, including China get marked down. We remain upbeat on the stock despite the change in outlook as we believe the company remains on track to sell non core assets such as Maine Energy by end of Q2:FY13, obtain an expansion to its landfill permits at the Southbridge and Chemung Landfills, and refinance its 11%, 180 million second lien notes. Accordingly, we are reaffirming our OUTPERFORM rating and would use recent weakness to initiate and/or add to current position.” Casella Waste Systems closed on Friday at $4.46.