Wedbush Maintains Neutral on WCA Waste Corp, Raises PT to $6.50

Wedbush reiterates its Neutral rating on WCA Waste Corp

and raises its price target to $6.50 from $4.50 to reflect buyout offer on the company. Wedbush notes, "After the market closed on Wednesday, WCA Waste Corporation (

) said it will be acquired by Macquarie Infrastructure Partners II (MIP), an infrastructure-investment fund of Macquarie Group in a transaction valued at $526 million, or $6.50/share and a 30% premium to WCAA's closing price on Tuesday. ... On the surface, the deal price of 8.4x our 2012 EBITDA estimate of $62.5 million appears to fully value WCAA, although an aggressive reduction in public company expense and SG&A costs of $10 million, or 3% of revenues, would imply a 7.3x multiple." WCAA closed at $4.91 per share on Wednesday.