A deal with German technology experts and the imminent financial close of the Greater Manchester Waste Disposal Authority deal has made a UK organics company a tipsters choice. In-vessel composting experts TEG, was picked out by analysts Canaccord Adams, which recommended a "buy" on the stock.
The analysts told Reuters TEG was undervalued and has a solid outlook with a strong pipeline of opportunities.
Deals that have helped improve the companys outlook include, TEGs recent deal with German anaerobic digestion experts UTS and the £38m contract with the GMWDA.
Share prices reached 40.5 pence on the London Stock Exchange on Tuesday (24 March), which is below Canaccord Adams recommended buy price of 70p.
TEG chief executive Mick Fishwick said: Any rising share price is a miracle in this climate but I cant comment on tipsters advice.
But, its great to be in a business that growing and theres so much potential in a business like ours. We expect strong growth in 2009 and will be growing for years to come.
Fishwick cited growth of about 50,000 per cent in four years as proof of steep growth.
In 2004, we had a turnover of about £20,000 by 2008 it was £12.7m, thats about 50,000 per cent. And in the past year weve grown six fold.
Commenting on TEGs involvement with the GMWDA project he said: Its helped the outlook of the company and everybody is waiting for financial close, which is imminent.
Recession is a difficult time but its not slowing the sector and the UK still has a huge amount of infrastructure to build.