"Bingo lifts on Morgans’ bullish callsBingo Industries is among the best performers on the market in afternoon trade after Morgans lifted its earnings forecast on the stock in the wake of its 2019 investor day.Analyst Nathan Lead said the broker is growing “cautiously more bullish” on the upside from the Queensland landfill levy and pontential for Victoria to raise its also.“We are becoming increasingly confident that BIN will benefit from the change (particularly its landfills). We now factor in a $15/t average price increase delivering a $20m EBITDA improvement in FY20,” Mr Lead says.“This is well below the price increase BIN is targeting. At a $35/t uplift we estimate the EBITDA improvement could be closer to $50m.”Alongside the faster-than-expected integration of Dial A Dump and site enhancemences, Morgans sees earnings lift from $105m in FY19 to $183m in FY20 and keeps the stock at an Add with a price target of $2.41."
BIN Price at posting:
$2.26 Sentiment: Buy Disclosure: Held
