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Investing.com - BMO Capital raised its price target on Republic Services (NYSE:RSG) to $284.00 from $280.00 on Wednesday, while maintaining an Outperform rating on the waste management company. According to InvestingPro data, the stock currently trades at a P/E ratio of 35.35x, suggesting a premium valuation relative to its peers.
The price target adjustment follows what BMO described as "another strong quarterly result" from Republic Services, which included the highest solid waste margin among its peers for the second consecutive quarter. The company’s financial strength is evident in its perfect Piotroski Score of 9, with revenue reaching $16.18 billion in the last twelve months.
Despite the strong year-to-date performance, Republic Services has maintained its 2025 Adjusted EBITDA guidance, which BMO Capital characterized as "conservative" given the company’s results so far this year.
BMO Capital noted that merger and acquisition activity remains active for Republic Services, and the company’s financial leverage is currently at the low end of its targeted range.
The firm highlighted that Republic Services has "significant capacity to self-fund deals and/or return capital to shareholders" due to its strong financial position.
In other recent news, Republic Services reported its second-quarter 2025 earnings, exceeding consensus estimates for adjusted EBITDA and EPS, although sales fell short of expectations. The company achieved notable margin expansion, with solid waste margins improving by 120 basis points year-over-year. Following this report, Oppenheimer maintained its Outperform rating on the company with a price target of $268. Additionally, Scotiabank (TSX:BNS) raised its price target to $260, citing a solid outlook despite recent labor disruptions.
S&P Global Ratings upgraded Republic Services to ’A-’ from ’BBB+’ due to improved credit metrics, reflecting a stable outlook. BMO Capital Markets also increased its price target to $280 while reaffirming an Outperform rating, highlighting the company’s digital investments and anticipated productivity gains. JPMorgan raised its price target to $275, maintaining a Neutral rating and noting the company’s potential for margin improvement through sustainability projects and strategic mergers. These developments indicate a positive sentiment among analysts regarding Republic Services’ growth prospects and financial health.
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