Wunderlich Securities Reiterates Buy Rating, $21 PT On CVA

Wunderlich Securities is reiterating its Buy rating and $21 PT on shares of Covanta

. “1Q is a maintenance period and combined with weather disruptions to spot tonnage deliveries sets up the quarter for weak results,” Wunderlich Securities writes. “Offsetting this pressure are slightly higher YOY metals and energy prices. Regardless, the expectation is that earnings are negative and then rebound for the remainder of the year. “Frankly, the most important issues are the buyback (how many shares were bought back in the period) and the probability of another increase in the authorization following the repatriation of the Asian asset sale proceeds. 1Q11 share buyback may be less than 3Q10 and 4Q10 given the number of blackout days in 1Q11.” Covanta closed Monday at $16.41.