Wunderlich still sees upside potential for Heritage-Crystal Clean

|About: Heritage - Crystal Clean, Inc. (HCCI)|By:, SA News Editor

"A secular change in the economics of used oil collection and sell thru to the RFO market should combine with better productivity ... to take the delivered cost to the re-refinery down sufficiently to support a better long-term FCF growth outlook," Wunderlich's Brian Butler says, reiterating a Buy rating on shares of Heritage-Crystal Clean (HCCI -2.1%).

Butler lifts his price target to $20-25, noting that "if and when margins at Environmental Services expand, [the company] is likely to use that upside to invest back into ES for growth but not at the expense of pressing through the 25% margin floor.”