In a report released today, Noah Kaye from Oppenheimer maintained a Hold rating on Republic Services (RSG). The company’s shares closed yesterday at $79.47, close to its 52-week high of $81.20.
Kaye commented:
“RSG delivered 1Q19 adj. EBITDA/EPS above our estimates and reiterated FY19 guidance on view to strength in solid waste offsetting incremental recycling headwinds. Organic growth was heavily weighted to price (2.9% average yield), which, along with improving labor/maintenance cost management, supported EBITDA and margins above consensus. While headline volumes (-1.5%) drew comparative focus, underlying growth of 60bps trended somewhat closer to peers, sub-7% defection speaks to relatively sticky customer base, and we anticipate seasonal uptick in 2Q. Consistent with peers, M&A spend began the year strong and could support upward revisions in future quarters. We remain on the sidelines in view of relative valuation.”
According to TipRanks.com, Kaye is a 5-star analyst with an average return of 8.7% and a 58.8% success rate. Kaye covers the Industrial Goods sector, focusing on stocks such as Rockwell Automation Inc, Caterpillar, and BorgWarner.
Currently, the analyst consensus on Republic Services is a Moderate Buy with an average price target of $84.75, which is a 6.6% upside from current levels. In a report issued on April 11, Stifel Nicolaus also downgraded the stock to Hold with a $86 price target.
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Republic Services’ market cap is currently $25.63B and has a P/E ratio of 25.15. The company has a Price to Book ratio of 3.23.
Based on the recent corporate insider activity of 46 insiders, corporate insider sentiment is negative on the stock.
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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.
