MEG - Montrose rises after Huco deal upgrade to Buy at Bank of America

Montrose Environmental Group ( NYSE: MEG ) on Monday rose after announcing it had acquired Huco Consulting to expand its range of environmental services. Terms of the agreement weren’t disclosed.

The stock rose as much as 9.9% to $47.69 a share during the morning of regular trading.

Huco Consulting advises businesses and government agencies on computer systems and software to help manage environment, health and safety issues, along with environmental, social and governance goals.

The deal was announced the same day that analysts at Bank of America upgraded Montrose ( MEG ) to Buy from Neutral on the demand for cleanup of remediating polyfluoroalkyl substances (PFAS), stricter environmental laws and demand for renewable natural gas.

PFAS compounds are used to make coatings and products that resist heat, oil, stains, grease and water. Some kinds of PFAS break down very slowly in the environment and can build up in human tissue.

“As well understood by investors, Montrose has patented technology and successful PFAS treatment case studies,” Andrew Obin, analyst at BofA Securities, said in a Dec. 12 report. “In addition to U.S. projects in the pipeline, the company also has several pilots underway in Germany and Sweden.”

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