NEW YORK (TheStreet) -- US Ecology (ECOL) shares are up 10.2% to $39.55 in trading Tuesday.
The stock continues to climb following yesterday's announcement that it had entered a stock purchase agreement to acquire The Environmental Quality Company. The $465 million deal is expected to close later this year.
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"The addition of EQ to US Ecology's family of permitted facilities will provide us with an expanded environmental services platform, broadening our geographic footprint and providing for a greater array of services to better meet the needs of our customers," said Jeff Feeler, President and CEO.
Wells Fargo (WFC) upgraded US Ecology to "outperform" while raising the company's price target to $42-$44. Keybanc also upgraded US Ecology shares to "buy" from "hold" with a price target of $42 following the acquisition announcement.
Separately, TheStreet Ratings team rates US ECOLOGY INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate US ECOLOGY INC (ECOL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."