Republic Services Inc. (NYSE: RSG), one of North America’s largest environmental services providers, has received a “Hold” rating from Wall Street Zen, signaling a more cautious stance despite recent analyst optimism. This downgrade contrasts with a wave of favorable assessments from several major financial institutions. Goldman Sachs raised its price target for the company from $239 to $265 and maintained a “Buy” rating. Likewise, the Royal Bank of Canada reaffirmed its “Outperform” rating with a $266 price target, and CIBC upgraded Republic Services from “Neutral” to “Sector Outperform” with a $264 objective.
Additional support came from Robert W. Baird, which increased its price forecast from $232 to $245 while remaining “Neutral” on the stock, and Argus, which issued a $260 target. Overall, according to MarketBeat data, Republic Services currently holds a consensus rating of “Moderate Buy,” with seven analysts recommending a hold, 12 assigning a buy, and two giving a strong buy. The average price target among analysts now sits at $250.44.
Stock Performance and Financial Metrics Remain Solid
Despite the downgrade, Republic Services has demonstrated strong market performance. As of Friday, RSG opened at $252.79, nearing its 52-week high of $253.76. The company has a market capitalization of $79 billion, a price-to-earnings (P/E) ratio of 38.95, and a beta of 0.66, suggesting low volatility relative to the market. With a price-to-earnings-growth (PEG) ratio of 3.64, the company is seen as having a stable outlook for future earnings.
Republic’s latest earnings report, released April 24, beat analyst expectations. The company posted earnings per share (EPS) of $1.58 for the quarter, exceeding the consensus estimate of $1.53. Revenue reached $4.01 billion, slightly below the expected $4.08 billion but up 3.8% year-over-year. The firm also reported a net profit margin of 12.74% and a return on equity of 18.28%, indicating strong profitability and operational efficiency. Analysts forecast Republic Services will post full-year EPS of 6.86 for the current fiscal year.
Institutional Investors Show Confidence in First Quarter
Institutional investors have been active in Republic Services’ stock during the first quarter of the year. Jupiter Wealth Management LLC increased its holdings by 10.6%, now owning 4,175 shares valued at over $1 million. Focus Partners Wealth grew its position by 1.9%, bringing its total shares to 164,907 worth nearly $40 million. Other firms, such as Integrity Alliance LLC and Anchor Investment Management LLC, also reported new or expanded stakes, reinforcing investor confidence in the company’s long-term prospects.
In total, institutional investors now hold 57.73% of Republic Services’ shares, reflecting broad market trust in the company’s performance. The firm continues to provide essential services, including recycling, waste management, and environmental solutions across the U.S. and Canada.
While the stock currently holds a “Moderate Buy” consensus, MarketBeat cautions that Republic Services is not among the top five stocks currently recommended by leading analysts, who believe better investment opportunities may exist elsewhere in the current market landscape.
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