Wunderlich Securities Reiterates Hold Rating on Clean Harbors (CLH)

Wunderlich Securities is out with a research report this afternoon, where it reiterates its Hold rating on Clean Harbors Inc. (NYSE: CLH); it has a $62.00 price target on the stock. The WS analysts said that in a low-growth, low-inflation economy, CLH's customer base is experiencing some improvement but not enough to help waste pricing or volumes processed. They said that part of the problem is that “waste generators can store volume for 90-120 days and storage was virtually empty entering 2010; delayed maintenance is beginning, but slowly.”They also cited capacity utilization, which is well below old highs with current levels more than likely becoming the new normal. As such, the pressure on operations is not nearly are large as it once was and that means “maintenance turns are longer.”The Wunderlich Securities analysts said, “There will be a point to own CLH based on its core businesses but we believe that is probably not until late 2010.”