Carriage Services stock initiated with Outperform rating by Raymond James

Investing.com - Raymond James initiated coverage of Carriage Services (NYSE:CSV) with an Outperform rating and a $60.00 price target on Wednesday. According to InvestingPro data, the stock currently trades at $44.37, suggesting significant upside potential. The company maintains a strong financial health score of "GOOD" and has consistently paid dividends for 15 consecutive years.

The firm views Carriage Services as a turnaround opportunity under new management, with EBITDA growth expected to accelerate from 4.7% in 2025 to 7.7% by 2027. The company’s current EBITDA stands at $117.7 million, with a P/E ratio of 13.3x, indicating attractive valuation levels relative to its growth potential.

Raymond James highlighted the company’s efforts to streamline operations, expand its pre-need business, and improve its balance sheet, which currently shows leverage of approximately 4x.

The $60 price target represents 14.9x 2027 EPS and 9.7x 2027 EBITDA, reflecting Raymond James’ confidence in the funeral service provider’s growth trajectory.

The firm noted that Carriage Services currently trades at a discount to larger competitor Service Corporation International (NYSE:SCI), with approximately a 3.5x EBITDA multiple gap that could narrow as the company delivers consistent quarterly results and reduces debt.

In other recent news, Carriage Services Inc . reported its Q2 2025 earnings, revealing an earnings per share (EPS) of $0.43, which was significantly below the forecasted $0.75, marking a -42.67% surprise. Despite this shortfall in EPS, the company slightly exceeded revenue expectations with $102.15 million against a forecast of $101.36 million. In terms of strategic growth, Carriage Services has been actively expanding its presence in Florida. The company recently acquired substantially all assets of Faith Chapel Funeral Homes & Crematory in Pensacola, which includes two funeral homes and a crematory serving approximately 700 families annually. Additionally, Carriage Services has expanded in the Orlando market with the acquisition of Osceola Memory Gardens and related funeral businesses. This acquisition comprises a combination of a funeral home located on a cemetery, five stand-alone funeral homes, a crematory and central care center, and a cremation-focused business. Financial terms for these acquisitions were not disclosed. These recent developments highlight Carriage Services’ ongoing efforts to strengthen its market position.

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