Republic Services stock initiated with Market Perform rating by Bernstein

Investing.com - Bernstein SocGen Group initiated coverage on Republic Services (NYSE:RSG) with a Market Perform rating and a price target of $205.00, closely aligned with the current stock price of $207.13.

The firm identified Republic Services as the second-largest operator in the waste management industry, describing it as the "safest pure-play exposure to an improving Waste Industry" compared to competitors Waste Management with its major acquisition and Waste Connections with legal challenges. InvestingPro data confirms Republic’s prominent position with a market capitalization of $64.1 billion, highlighting its significant industry presence.

Bernstein noted Republic’s sustainability investments carry reduced risk as they are structured through joint ventures with industry leaders including BP and Ravago, making them "attractive on a risk-adjusted basis." This strategic approach contributes to Republic’s "GOOD" overall financial health score of 2.53 according to InvestingPro metrics.

The research highlighted Republic’s improving margin outlook, with management successfully transitioning contracts from CPI-based pricing toward higher-margin open-market pricing, which Bernstein estimates will provide a 25-35 basis point annual EBITDA margin improvement. Republic already maintains a healthy gross profit margin of 43.27% with EBITDA of $5.16 billion over the last twelve months.

Despite these positives, Bernstein indicated Republic’s valuation is "fair on an absolute basis and expensive versus peers," noting the stock has outperformed by approximately 15% since Waste Management announced its Stericycle acquisition, suggesting investors rotated out of Waste Management and into Republic Services despite similar results and outlook. InvestingPro analysis aligns with this assessment, showing Republic trading at a P/E ratio of 30.69 and EV/EBITDA of 14.87, with additional ProTips indicating the stock is trading at high valuation multiples. Get the complete Pro Research Report and 15+ additional ProTips to fully understand Republic’s investment potential.

In other recent news, Republic Services Inc . reported its third-quarter 2025 earnings, exceeding analysts’ expectations with adjusted earnings per share of $1.90, surpassing the forecasted $1.78. However, the company’s revenue slightly missed projections, totaling 4.21 billion dollars compared to the anticipated 4.25 billion dollars. Additionally, Raymond James adjusted its price target for Republic Services, lowering it from $250 to $240, while maintaining an Outperform rating on the stock. The firm highlighted the company’s renewed focus on growth, profitability, and consistency following years of steady expansion. These developments provide investors with significant insights into Republic Services’ recent performance and strategic direction.

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