Wunderlich Has Buy Rating On Waste Connections Inc. (WCN

Wunderlich Securities has a Buy rating and is raising its price target on Waste Connections Inc.

to $38 following earnings. In a note to clients, Wunderlich Securities writes, "We maintain our Buy rating and we are raising our price target to $38 on shares of Waste Connections (

). WCN delivered another quarter of better-than-expected results, exceeding the high end of guidance range as well as consensus estimates. Clearly, County Waste was a big driver in growth; however, organic growth also improved, increasing to 5.5% from 4.9% in 1Q11. In addition, WCN's EBITDA margins improved 30bps to 32.8% despite a 100bps drag from higher fuel prices and the addition of County Waste's collection-only revenues. Looking out to 2012, price and volume should return to a combined growth of 5% with EBITDA margins holding at 32%-33% and FCF margins in the mid-teens." Shares of WCN closed at $33.45 yesterday.