Shares in waste removal group, Bingo Industries ended the day steady at $2.85 after it surprised with an update that revealed the Australian Competition and Consumer Commission was conducting an investigation into price adjustments made in July 2019 in the building and demolition waste sector in NSW.
UBS expects a softening in residential and commercial construction will negatively affect waste volumes across Australia. Still, Bingo Industries should be resilient and could even benefit from increased infrastructure projects.
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.