Oppenheimer analyst Ian Zaffino maintained a Buy rating on Servicemaster Global Holdings (SERV) today and set a price target of $47. The company’s shares opened today at $42.68.
Zaffino commented:
“Helped by 5% organic growth at Terminix, SERV beat 4Q18 revenue estimates ($457M, vs. our/Street’s $450M/$446M forecasts) and was more or less in line on adjusted EBITDA ($80M, vs. our/Street’s $83M/$82M). FY2019 guidance calls for revenues of $2,020M-$2,050M (+7.1% YoY), vs. our/Street’s $2,010M/$1,976M estimates and for adjusted EBITDA of $435M-$445M (+10.6%), vs. our/Street’s $443M/$438M. Terminix should grow 2%-3% organically with 30% incremental margins. Separately, the board of directors approved a three-year extension for $150M of share repurchases. Maintain Outperform.”
According to TipRanks.com, Zaffino is a 3-star analyst with an average return of 1.5% and a 52.9% success rate. Zaffino covers the Services sector, focusing on stocks such as Wyndham Hotels & Resorts Inc, frontdoor inc, and Peak Resorts.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Servicemaster Global Holdings with a $41.50 average price target.
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Based on Servicemaster Global Holdings’ latest earnings release for the quarter ending September 30, the company reported a quarterly revenue of $873 million and net profit of $71 million. In comparison, last year the company earned revenue of $666 million and had a net profit of $306 million.
Based on the recent corporate insider activity of 35 insiders, corporate insider sentiment is negative on the stock.
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ServiceMaster Global Holdings, Inc. engages in the provision of residential and commercial services. It operates through the following segments: Terminix, American Home Shield, and Franchise Services Group. The Terminix segment provides termite and pest control services to residential and commercial customers; as well as distributes pest control products.
