Republic Services: Scotiabank raises PT to $260 from $250, maintains Sector Perform.

Republic Services: Scotiabank raises PT to $260 from $250, maintains Sector Perform.

Scotiabank (TSX: BNS) has raised its price target for Republic Services (NYSE: RSG) to $260.00 from $250.00 while maintaining a Sector Perform rating on the waste management company's stock. This increase reflects the firm's positive outlook on Republic Services' solid financial health and growth prospects [1].

According to InvestingPro data, Republic Services has achieved a perfect Piotroski Score of 9, indicating strong financial health. Despite this, current market valuations suggest the stock may be trading above its Fair Value. The price target increase comes as Scotiabank positions its estimates above the midpoint of Republic Services' guidance ranges, even after accounting for labor disruptions that occurred in July [1].

Scotiabank noted that any potential upside to Republic Services' guidance would likely stem from new acquisitions, while further labor disruptions remain the primary downside risk to the company's outlook. The research firm highlighted that Republic Services had already deployed the majority of its targeted acquisition budget exceeding $1.0 billion in the first quarter, suggesting limited likelihood for significant acquisitions during the remainder of 2025 [1].

In addition to the price target increase, Republic Services has reported several significant developments that are drawing attention from investors. S&P Global Ratings has upgraded Republic Services to an 'A-' from 'BBB+', citing improved credit metrics and operational performance. The company's EBITDA increased to approximately $5.2 billion over the last 12 months, with margins improving to about 32% [1].

Other analysts have also shown optimism about Republic Services. BMO Capital Markets has raised its price target for Republic Services to $280, maintaining an Outperform rating due to the company's growth prospects and margin expansion potential. JPMorgan has adjusted its price target for Republic Services to $275, reflecting optimism about the company's sustainability projects and strategic growth plans. Citi analyst Bryan Burgmeier also increased the price target to $278, maintaining a Buy rating following Republic Services' strong first-quarter performance [1].

Moreover, Republic Services' shareholders have approved the Board of Directors and executive compensation at the 2025 Annual Meeting. The meeting also ratified the appointment of Ernst & Young LLP as the independent accounting firm for the year. These developments underscore Republic Services' robust financial health and strategic initiatives, which continue to attract positive attention from analysts and investors alike [1].

References:
[1] https://uk.investing.com/news/analyst-ratings/scotiabank-raises-republic-services-stock-price-target-to-260-on-solid-outlook-93CH-4174719
[2] https://www.investing.com/news/analyst-ratings/scotiabank-raises-republic-services-stock-price-target-to-260-on-solid-outlook-93CH-4141728
[3] https://www.tipranks.com/news/the-fly/republic-services-price-target-raised-to-260-from-250-at-scotiabank-thefly?utm_medium=referral&utm_source=edition.cnn.com