Wedbush Has Outperform on Perma-Fix Environmental Services

Wedbush is out with a research report on Perma-Fix Environmental Services PESI and it has an Outperform rating and a $2.50 price target on shares. In a note to clients, Wedbush writes, "We are reaffirming our positive stance on shares of Perma-Fix Environmental Services (PESI) heading into the company's Q3:11 earnings release on what we believe is expected to be a strong revenue, cash flow and earnings quarter, driven primarily by increased volumes from higher activity materials and progress on large contracts such as Portsmouth and K-25. Despite some of the macro environment conditions impacting the broader market, we believe PESI will see continued balance sheet improvements led by strong cash conversion cycle. Given (i) an improved and healthy backlog, (ii) the potential acquisition of Safety & Ecology Holdings Corporation (SEC), and (iii) improved balance sheet, aided by the completion of divestitures of its Industrial asset base, we are reiterating our OUTPERFORM rating and would view the recent price weakness as an opportunity to add to current positions given the favorable risk-reward profile." Shares of PESI gained 8 cents yesterday to close at $1.22, a gain of 7.02%.