Service Corp. Intl. stock price target raised to $90 from $85 at Raymond James

Published 04/08/2025, 18:30
Service Corp. Intl. stock price target raised to $90 from $85 at Raymond James

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 stock. With a market capitalization of $11.06 billion, InvestingPro data shows the stock currently trades at a P/E ratio of 21.2x, suggesting a premium valuation relative to its near-term earnings growth potential.

The funeral services provider, which has maintained dividend payments for 21 consecutive years and currently offers a 1.64% yield, reported second-quarter 2025 adjusted earnings per share of $0.88, exceeding the Street consensus of $0.85. The earnings beat was driven by several factors, including better general agency commissions from the insurance transition in pre-need funeral, which added $5 million net year-over-year.

Service Corp. also posted better-than-expected funeral volumes, which increased 1.1% compared to consensus estimates of flat growth. The company’s funeral average service price rose 3.0%, aided by a modest cremation mix shift of only 20 basis points.

Management reiterated its 2025 EPS guidance range of $3.70-4.00, while increasing cash flow from operations guidance by $50 million due to legislative changes affecting cash tax payments. The company expects second-half funeral volume seasonality to be more weighted toward the fourth quarter as the third quarter faces tougher year-over-year comparisons.

Service Corp. executives expressed confidence in maintaining their long-term EPS growth range of 8-12% beyond 2025, despite operating from a significantly higher earnings base compared to previous years. The company has demonstrated consistent revenue growth of 2.65% over the last twelve months, with analysts maintaining a strong buy consensus on the stock.

In other recent news, Service Corporation International (SCI) reported financial results for the second quarter of 2025 that surpassed expectations. The company achieved earnings per share of $0.88, exceeding the analysts’ consensus estimate of $0.85. Additionally, SCI’s revenue reached $1.07 billion, surpassing the projected $1.05 billion. These results highlight the company’s robust performance during the quarter. In light of these strong earnings, Raymond James adjusted its price target for SCI, raising it from $85.00 to $90.00, while maintaining an Outperform rating. This adjustment reflects the firm’s positive outlook on the company’s continued growth. The recent developments underscore the confidence of analysts and investors in SCI’s financial health and operational strategy.

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