Metalico's (NYSE:MEA) Q1 2011 Shaping Up Nice

The fourth quarter of 2010 was a down one for Metalico (NYSE:MEA), for reasons outside of the control, but Canaccord says they see the first quarter of 2011 looking good.

Canaccord said, "Based on factors mainly outside Metalico’s control (e.g., inclement winter weather), we are taking a somewhat more conservative view of Q4/10 and reducing our estimates accordingly. However, our research suggests Q1/11 is shaping up nicely and we therefore increase our estimates in this period and for the full year. We remain bullish on Metalico and reiterate our rating.

"...We are trimming our Q4 revenue/EPS estimates to $108M/$0.02 from $121M/$0.06 previously. We note our revised estimates incorporate a lower EBITDA margin estimate of 6.8%, down from 8.5% previously...raise our Q1/11 revenue/EPS estimates to $138M/$0.12 (from $135M/$0.11) and increase our full-year estimates to $594M/$0.58 (from $571M/$0.55)."

Canaccord Genuity reiterates a "Buy" on Metalico, which closed Thursday at $5.95, down $0.22, or 3.57 percent. They have a price target of $8 on them.