Michael Feniger, an analyst from Bank of America Securities, reiterated the Buy rating on Republic Services (RSG – Research Report). The associated price target was raised to $265.00.
Michael Feniger has given his Buy rating due to a combination of factors that highlight Republic Services’ strong performance and potential for growth. The company reported an impressive start to the year with an EBITDA of $1.27 billion, which is an 8.8% increase year-over-year and exceeded expectations by 3%. This growth was supported by a significant margin expansion, indicating robust underlying business operations.
Additionally, Republic Services has demonstrated effective cost management, with cost inflation remaining in the 4% range and impressive efficiency in areas such as maintenance and repair costs. The company also benefits from a positive price versus cost spread, which is expected to continue due to improved pricing strategies and potential impacts from tariffs. These factors, combined with a maintained price objective of $265, reinforce the visibility of margin expansion and underpin Feniger’s confidence in reiterating a Buy rating.