In a report released today, Noah Kaye from Oppenheimer maintained a Hold rating on Republic Services (NYSE: RSG). The company’s shares closed yesterday at $68.36.
Kaye wrote:
“RSG beat 3Q18 EPS/FCF consensus on continued solid waste strength, while reiterating FY18 guidance and providing an initial FY19 adj. EPS/FCF outlook, with midpoint slightly below consensus. As investors focus on waste companies’ ability to raise price in excess of cost inflation, RSG management indicated that 2.5% cost growth net of productivity gains in FY19 was feasible while average yield should continue to trend up from 3Q’s 2.4%. We are modeling 5% total opex growth in FY19, but expect to revisit that assumption in 4Q as abating recycling headwinds more clearly reveal underlying opex trends. We slightly trim our FY19 adj. EPS/FCF estimates and, in light of relative valuation, maintain our Perform rating.”
According to TipRanks.com, Kaye is a 3-star analyst with an average return of 2.3% and a 50.3% success rate. Kaye covers the Basic Materials sector, focusing on stocks such as Advanced Disposal Services Inc, Waste Connections Inc, and Waste Management.
Republic Services has an analyst consensus of Moderate Buy, with a price target consensus of $75.67, representing a 10.7% upside. In a report issued on October 24, Merrill Lynch also downgraded the stock to Hold with a $74 price target.
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The company has a one-year high of $75.82 and a one-year low of $60.26. Currently, Republic Services has an average volume of 1.27M.
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Republic Services, Inc. engages in the provision of services in the domestic non-hazardous solid waste industry. It provides integrated waste management services, which offers non-hazardous solid waste collection, transfer, recycling, disposal and energy services. The company was founded in 1996 and is headquartered in Phoenix, AZ.
