Republic Services downgraded to Market Perform from Outperform at BMO Capital

BMO Capital analyst Devin Dodge downgraded Republic Services Group to Market Perform from Outperform with a price target of $148, down from $152. Republic Services has significantly outperformed the market this year, reflecting robust industry conditions, solid execution, and an investor preference for defensive stocks, Dodge tells investors in a research note. While solid waste stocks typically outperform deep into a recession, the much anticipated economic pullback has largely been reflected in the relative share price performance, says the analyst. As such, he sees diminishing potential returns over the next 12 months. Despite the downgrade, Dodge still believes Republic Services could be attractive for investors with a longer time horizon.