Insituform Technologies Inc. (INSU) saw its shares jump nearly 15 percent to a fresh 12-month high Wednesday following a brokerage upgrade predicting higher spending for sewer rehabilitation programs.
Stifel Nicholaus analyst Jeffrey L. Beach lifted the rating to "Buy" from "Hold" saying that spending on sewer and wastewater infrastructure is in a "powerful uptrend," with an estimated 10 percent growth rate in 2005. This trend, he said, should last at least through the end of the decade. His target price for the stock is $27.
The Chesterfield, Mo.-based Insituform's core business is sewer rehabilitation, which accounts for over 75 percent of sales, and holds a dominant industry position in the United States and a leading role in Europe. [ more ]
Leave a comment