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Investing.com - TD Cowen reduced its price target on Republic Services (NYSE:RSG) to $250.00 from $255.00 on Tuesday while maintaining a Hold rating on the waste management company’s stock. According to InvestingPro data, Republic Services maintains a perfect Piotroski Score of 9, indicating strong financial health, despite trading above its Fair Value.
The firm cited weakening volumes as a key concern, noting that benefits from recent storms and wildfires are abating and may no longer mask underlying weakness in economically sensitive end markets.
TD Cowen adjusted its 2025-2030 EBITDA estimates downward by 1% to reflect Republic Services’ lower revenue guidance, which is impacted by ongoing volume weakness.
The new price target represents a 17.2x EV/EBITDA multiple on 2025 earnings and a 16.0x multiple on 2026 earnings, offering approximately 8% potential upside from current levels.
Republic Services stock has declined 7.5% over the past three months, which TD Cowen acknowledged makes the valuation more attractive, though the uncertain volume outlook keeps the firm cautious for now.
In other recent news, Republic Services has reported significant developments that are drawing attention from analysts and investors alike. The company exceeded consensus estimates for adjusted EBITDA and EPS in the second quarter, although sales were below expectations. Notably, Republic Services achieved a 120 basis point improvement in solid waste margins year-over-year. BMO Capital has responded to these strong results by raising its price target for Republic Services to $284, maintaining an Outperform rating. Similarly, Scotiabank (TSX:BNS) increased its price target to $260, citing a solid outlook despite labor disruptions. Oppenheimer also maintained its Outperform rating with a price target of $268. In another positive development, S&P Global Ratings upgraded Republic Services to ’A-’ from ’BBB+’, reflecting improved credit metrics. BMO Capital further highlighted Republic Services’ focus on digital investments, which have already delivered significant productivity gains, with expectations for continued benefits.
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