Oppenheimer Maintains Buy Rating for Service International with $86 Price Target

Oppenheimer maintains a Buy rating on Service International with a price target of $86.00, citing the company's strong financial performance. Analyst Scott Schneeberger has a 12.9% average return and a 61.45% success rate on recommended stocks. The analyst consensus is Strong Buy with a price target consensus of $90.67, representing a 19.89% upside from current levels.

Oppenheimer analysts have maintained their positive outlook on Service Corporation International (SCI), reaffirming a Buy rating with a price target of $86.00. The analyst, Scott Schneeberger, has a proven track record with a 12.9% average return and a 61.45% success rate on recommended stocks [1]. This bullish sentiment is echoed by the broader analyst consensus, which is also a Strong Buy with a price target consensus of $90.67, representing a 19.89% upside from current levels [2].

Service Corporation International, the largest provider of deathcare products and services in North America, recently reported its fourth-quarter earnings for 2024, showcasing strong financial performance that led to a significant rise in its stock price. The company reported an EPS of $1.06, slightly missing analyst estimates but still demonstrating robust revenue growth [3]. The company's strong financial health is further evidenced by its 11 consecutive years of dividend increases, with the latest quarterly dividend raised by 6.7% to $0.32 per share [4].

Analysts point to SCI's diversified business model, which includes funeral service locations, cemeteries, and professional services related to funerals and cremations, as a key driver of its success. The company's revenue for the quarter came in at $1.09B, topping consensus estimates, and its market capitalization stands at $11.36B with a strong balance sheet [5].

Despite the recent earnings report, Oppenheimer analysts caution that SCI's stock price has already appreciated significantly, and they advise a cautious approach. They note that the stock's valuation metrics, such as a P/E ratio of 21.88 and a Price/Book ratio of 6.78, are relatively high compared to its peers [6]. However, they believe that the company's strong fundamentals and growth prospects justify the current valuation.

In conclusion, Oppenheimer's positive rating on Service Corporation International is supported by the company's strong financial performance and the analyst consensus. However, investors should carefully consider the stock's valuation and the broader market conditions before making investment decisions.

References:
[1] https://www.investing.com/equities/service-corporation-international
[2] https://www.investing.com/equities/service-corporation-international
[3] https://www.investing.com/equities/service-corporation-international
[4] https://www.investing.com/equities/service-corporation-international
[5] https://www.investing.com/equities/service-corporation-international
[6] https://www.investing.com/equities/service-corporation-international