Gold prices steady, holding sharp gains in wake of soft U.S. jobs data
On Monday, Citi analyst Bryan Burgmeier increased the price target for Republic Services (NYSE:RSG) stock, moving it up to $278 from the previous $265, while continuing to recommend a Buy rating for the company’s shares. The adjustment comes in the wake of Republic Services’ first-quarter performance, which surpassed expectations, particularly in terms of margin growth within its Solid Waste & Recycling business.
Republic Services’ recent financial results have led to an upward revision of earnings estimates by Citi. The firm now positions its 2025 EBITDA prediction at the center of the company’s guidance range, estimating $5.296 billion against the provided range of $5.275 to $5.325 billion, building upon the company’s current EBITDA of $5.038 billion. This adjustment reflects the anticipation that core price increases will balance any potential softening in volume.
Citi’s analysis suggests a slight decrease in revenue expectations, positioning them just under the low end of the company’s guidance. This is based on an assumption of a 0.50% decline in volume for 2025, contrasting with the company’s forecast of a volume change within a range of plus or minus 0.25%. The projection also accounts for ongoing challenges in the Large-Container segment.
For the second quarter, Citi forecasts a 0.60% year-over-year increase in total company EBITDA margins, reaching 31.7%. This projection indicates relatively stable quarter-over-quarter margins in the Solid Waste sector, which is a departure from typical seasonal trends. This stability is partly attributed to the first quarter having one less payroll period.
The new price target of $278 reflects the updated estimates and target multiple, as Citi reaffirms its Buy rating on Republic Services stock. The firm’s outlook is based on the company’s strong first-quarter results and anticipated margin expansion. For deeper insights into Republic Services’ valuation and growth prospects, InvestingPro subscribers can access comprehensive analysis, including 15+ additional ProTips and detailed financial metrics in the Pro Research Report, helping investors make more informed decisions about this $76.11 billion market cap company.
In other recent news, Republic Services reported first-quarter earnings for 2025 that exceeded analyst expectations, with adjusted earnings per share of $1.58 surpassing the consensus estimate of $1.56. However, the company’s revenue of $4.01 billion fell short of the anticipated $4.08 billion. Despite a 3.8% year-over-year revenue growth driven by a 4.5% increase in average yield, the company experienced a 1.2% decline in volume. Republic Services’ adjusted EBITDA margin expanded to 31.6%, up from 30.2% in the previous year, and the company generated $727 million in adjusted free cash flow during the quarter. The management reaffirmed its full-year 2025 adjusted EPS guidance range of $6.23 to $6.38 and expects revenue growth between 3.75% to 5.25% for the year. Additionally, Oppenheimer maintained an Outperform rating on the company with a $262 price target, citing strong pricing and margin results. The analysts noted the company’s progress in sustainability investments and a robust merger and acquisition pipeline, suggesting a high chance of exceeding its targeted annual expenditure of $1 billion. Republic Services’ strategic developments and financial outlook remain positive, according to Oppenheimer.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.