By Chris Bailey of Financial Orbit | Friday 21 May 2021
Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
I have had a positive view on the waste management company Biffa (BIFF) for a while now, mentioning last October here that ‘on a similar multiple for its likely earnings for the 2021 or 2022 full years and this is how you get a three quid odd share price target’. Back then the stock was about 220 pence, but today it is almost at my three quid target…and it is nothing to do with its next set of numbers (which are due next week). Earlier today, Biffa announced it would be buying the collections business and ‘certain recycling assets’ from its industry peer Viridor. So why are its shares up nicely this morning?
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