William Blair analyst Trevor Romeo has reiterated their bullish stance on RSG stock, giving a Buy rating on April 23.
Trevor Romeo has given his Buy rating due to a combination of factors that highlight Republic Services’ strong financial performance and strategic initiatives. The company demonstrated impressive growth in adjusted EBITDA and EPS, surpassing expectations despite a slight revenue miss. This growth was driven by a robust pricing strategy that outpaced internal cost inflation, leading to significant margin expansion.
Additionally, Republic Services is actively pursuing strategic acquisitions, with spending likely to exceed initial targets, enhancing its capabilities in environmental solutions. Despite some volume softness and weather-related revenue impacts, the company’s pricing and margin strengths are expected to offset these challenges. Furthermore, Republic’s investments in sustainability projects, such as new RNG projects and a polymer center, are expected to contribute positively to future earnings. These factors collectively support the Buy rating as they position Republic Services for continued financial success.
In another report released on April 23, RBC Capital also maintained a Buy rating on the stock with a $249.00 price target.
Based on the recent corporate insider activity of 77 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of RSG in relation to earlier this year.