Wunderlich Maintains Buy On Waste Connections (WCN)

Wunderlich Securities is out with a research report on Waste Connections Inc.

and is maintaining its Buy rating and $55 price target on shares. In a note to clients, Wunderlich Securities writes, "We maintain our Buy rating on the shares of Waste Connections (

) and price target of $35. Weather, fuel and commodities were the focus of the 1Q11 earnings cycle. Weather should be a non-issue. Although fuel and commodities will influence 2Q11 results, the integration of County Waste will be on investors' minds. At a ~$300mm purchase price, WCN raised some eyebrows. We seriously doubt that WCN has had an aberrant moment and overpaid. Therefore we believe that bringing clarity to what County adds to 2Q and beyond will assure the market that WCN's entry into the Northeast U.S. is consistent with its business model and the value creation it has produced historically." Shares of WCN closed at $32.70 on Friday.