Republic Services price target lowered to $138 from $148 at BMO Capital

BMO Capital analyst Devin Dodge lowered the firm’s price target on Republic Services to $138 from $148 and keeps a Market Perform rating on the shares after its Q4 results. The company’s pricing increase is outpacing cost inflation and driving underlying solid waste margin expansion, but while valuation on the stock is now "less demanding" than 2-3 months ago, there is "limited visibility" into potential re-rating higher, the analyst tells investors in a research note. The firm believes that investor sentiment is now favoring less defensive stocks, which is likely to keep a lid on Republic Services multiple in the near term.