Procore signs multi-year strategic collaboration agreement with AWS
Investing.com - Raymond (NSE:RYMD) James raised its price target on Service Corp. Intl. (NYSE:SCI) to $90.00 from $85.00 on Monday, while maintaining an Outperform rating on the funeral services provider. The $11.06 billion company currently trades at $78.88, with analyst targets ranging from $85 to $98. According to InvestingPro analysis, the stock appears overvalued at current levels.
The price target increase follows Service Corp.’s second-quarter 2025 results, which exceeded expectations with adjusted earnings per share of $0.88, compared to the Street consensus of $0.85. Trading at a P/E ratio of 21.2x, the stock commands a premium multiple relative to its near-term earnings growth potential, as highlighted by InvestingPro data.
The company’s outperformance was driven by several factors, including better general agency commissions from insurance transition in pre-need funeral arrangements (adding $5 million net year-over-year), funeral volumes that grew 1.1% (versus 0% consensus), and stronger funeral average service price, which increased 3.0%.
Service Corp. maintained its 2025 EPS guidance range of $3.70-4.00, but increased its cash flow from operations guidance by $50 million due to legislative changes affecting cash tax payments.
Raymond James noted that management expressed confidence in the company’s long-term EPS growth range of 8-12% beyond 2025, despite operating from a significantly higher earnings base compared to previous years.
In other recent news, Service Corporation International (SCI) reported financial results for the second quarter of 2025 that exceeded expectations. The company achieved earnings per share (EPS) of $0.88, surpassing the forecasted $0.85, which represents a 3.53% surprise. Revenue for the quarter reached $1.07 billion, exceeding the anticipated $1.05 billion. These results reflect positively on the company’s recent performance. Additionally, there were no reports of mergers or acquisitions involving SCI. Analyst actions, such as upgrades or downgrades, were not mentioned in the recent developments. This information provides insight into SCI’s current financial standing and market perception.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.