Wunderlich Securities Reiterates Buy Rating And $40 PT On Waste Management

Wunderlich Securities is reiterating its Buy rating and $40 target on shares of Waste Management, Inc.

. “Start with a reaffirmed free cash flow (

) target of $1.2B,” Wunderlich Securities writes. “Frame that against 4Q10 earnings guidance of $0.54 to $0.56; mushy volume trends at the product line but stable core collection price and low but prospective rising MSW landfill prices; cost cutting; and productivity initiatives, and the conclusion should be lots of FCF (baseline of $1.2B) with modest year-in and year-out growth of FCF in a low-growth economy.” Waste Management, Inc. currently trades at $35.61.