Waste collection is not the most glamorous of industries, it goes without saying, but Shanks Group is in demand among investors this morning.
Shares in the group, whose operations include landfill disposal, hazardous waste transportation and industrial cleaning, have jumped 4.75p to 92.5p after a positive note from Goldman Sachs. The bank has lifted its share price target from 153p to 170p. It said:
"Shanks, as a waste-only company, is one of the most geared stocks in the utilities sector to a pick-up in economic and industrial activity, and it is also the stock where we see the greatest upside potential. We see strong growth opportunities, particularly in the fast-developing UK waste market, where regulation creates a favourable environment for Shanks.
"We would also expect the announcement of disposals (such as the sale of equity stakes in UK PFIs) to act as a catalyst in the next 6-12 months."
