William Blair & Company initiated research coverage of Montrose Environmental Group, Inc. (MEG $24.74). Montrose Environmental is a leading integrated environmental solutions provider, with a broad portfolio of technologies that are used to evaluate, analyze, and remediate environmental issues for corporate and government clients.
Analyst Tim Mulrooney estimated the company would generate revenue of $305 million in 2020 and $363 million in 2021, and noted that the coronavirus pandemic is expected to affect organic growth by only about 3% in 2020.
"Montrose is well positioned in the large and growing environmental services industry," Mulrooney said. "The $1.25 trillion environmental solutions industry is highly fragmented, with many small providers focusing on only one region or service offering. In contrast, Montrose's integrated platform is designed to support public and private sector clients across the life cycle of their needs. With a diversified mix of clients, end-markets, and geographies, Montrose is not dependent on any single service, product, or regulatory framework. Its deep bench and intellectual property portfolio open the door to many interesting and attractive growth opportunities. This includes advanced air quality monitoring, agricultural waste-to-energy biogas digesters, optical gas imaging, and proprietary regenerable resin technology to remove harmful PFAS substances from water. We expect strong secular tailwinds to support organic growth, driven by increasing government regulation, corporate focus on ESG, and consumer demands for a cleaner environment."
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William Blair or an affiliate was a manager or co-manager of a public offering of equity securities of Montrose Environmental Group, Inc. within the prior 12 months.
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Current Ratings Distribution (as of 8/16/20)
Outperform (Buy): 71%
Market Perform (Hold): 29%
Underperform (Sell): 1%
Inv. Banking Relationships*
Outperform (Buy): 20%
Market Perform (Hold): 8%
Underperform (Sell): 0%
* Percentage of companies in each rating category that are investment banking clients, defined as companies for which William Blair has received compensation for investment banking services within the past 12 months.
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