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Investing.com - Oppenheimer raised its price target on Service Corp. Intl. (NYSE:SCI) to $91.00 from $86.00 on Thursday, while maintaining an Outperform rating on the funeral services provider. The company, currently trading at $81.61 with a market cap of $11.5 billion, shows strong fundamentals according to InvestingPro data, with a P/E ratio of 21.8x.
The revised target follows an investor field trip to SCI’s Rose Hills Memorial Park, which Oppenheimer noted is the largest cemetery in North America and contributes approximately 10% of SCI’s annual EBITDA.
Oppenheimer highlighted that Rose Hills appears positioned for high price-point sales activity, with its new section called "The Oaks" recently becoming available to customers, though it remains partly under construction.
The firm expressed confidence that SCI’s second-quarter 2025 outperformance and corresponding momentum is sustainable in the second half of 2025 and beyond, with anticipated contribution from continued solid Cemetery pre-need sales production growth.
Oppenheimer also noted that SCI appears attractively valued in a market that may soon seek the company’s relatively resilient yet simultaneously improving growth and free cash flow generation profile.
In other recent news, Service Corporation International reported impressive financial results for the second quarter of 2025. The company achieved adjusted earnings per share of $0.88, surpassing the Street consensus of $0.85. Revenue also exceeded expectations, reaching $1.07 billion compared to the forecasted $1.05 billion. These results demonstrate the company’s strong performance, driven in part by improved general agency commissions from the insurance transition in pre-need funeral services. Additionally, the Board of Directors approved a quarterly cash dividend of 32 cents per share, payable on September 30, 2025. In response to these developments, Raymond (NSE:RYMD) James raised its price target for Service Corporation International to $90 from $85, maintaining an Outperform rating. These recent developments reflect positively on the company’s financial health and future prospects.
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