Stifel resumes Republic Services stock coverage with Buy rating

Investing.com - Stifel has resumed coverage of Republic Services (NYSE:RSG) with a Buy rating and a price target of $257.00, representing potential upside from Monday’s closing price of $228.21. The company, currently valued at $71.4 billion, has earned a perfect Piotroski Score of 9 according to InvestingPro data, indicating strong financial fundamentals.

The research firm expects Republic Services to deliver high-teens free cash flow growth in 2026, followed by low-double-digit FCF growth in both 2027 and 2028.

This projected growth will come from multiple sources, including renewable natural gas (RNG) and Polymer projects ramping up and coming online as capital intensity normalizes, continued pricing discipline in the Environmental Services business, and additional acquisition growth.

Stifel notes that Republic Services may face periodic impacts from labor union strikes, given that 22% of the company’s workforce is unionized.

The firm believes Republic’s story will likely evolve toward predictable capital return to shareholders, with free cash flow per share and adjusted EBITDA per share growth enhanced by share repurchases that reduce the outstanding share count.

In other recent news, Republic Services reported their second-quarter 2025 earnings, surpassing consensus estimates for adjusted EBITDA and EPS, although sales fell short of expectations. The company achieved notable margin expansion, with solid waste margins improving by 120 basis points year-over-year. BMO Capital responded to these strong results by raising its price target for Republic Services to $284, maintaining an Outperform rating. Similarly, Oppenheimer kept an Outperform rating with a $268 price target, further highlighting the company’s strong performance. However, TD Cowen expressed concerns over weakening volumes, reducing their price target to $250 while maintaining a Hold rating. Barclays initiated coverage on Republic Services with an Equalweight rating and a $240 price target, noting its stable earnings profile and low leverage. Meanwhile, Rocky Shore Gold announced plans to raise up to $1.5 million through a private placement, offering units and flow-through shares priced at $0.05 each. These developments reflect a dynamic period for both Republic Services and Rocky Shore Gold, with analysts offering varied perspectives on future performance.

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