UBS finds the majority of the Sydney market has implemented larger-than-expected price increases, off the back of the Queensland landfill levy. The broker believes there is further upside available from recent price increases.
UBS incorporates a -23% fall in residential volumes in FY20. However, recent reductions in official interest rates are expected to soften the potential downturn.
The broker considers the valuation appealing and retains a Buy rating. Target is raised to $2.70 from $2.00.
Sector: Commercial & Professional Services.
Target price is $2.70.Current Price is $2.41. Difference: $0.29 – (brackets indicate current price is over target). If BIN meets the UBS target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
