Wedbush Maintains Neutral on WCA Waste Corp, Raises PT to $6.50
Wedbush reiterates its Neutral rating on WCA Waste Corp (NASDAQ: WCAA) 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 (WCAA) 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.
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