RBC upgrades Republic Services to 'outperform' on favorable 2025, M&A prospects

Republic Services

06/01/2025 17:04

** RBC Capital Markets upgrades garbage management firm
Republic Services  RSG.N  to "outperform" from "sector perform"
and raises PT to $237 from $219
    ** Brokerage sees a favorable 2025 for co given its
high-single-digit EPS growth outlook, along with potential for
upside from future mergers and acquisitions
    ** Says M&As in 2025 across both solid waste and
environmental solutions businesses are favorable, with co's
balance sheet in "good shape"; expects an uptick in merger
activities following a slower 2024
    ** Says mergers or acquisitions of environmental solutions
businesses could show meaningful progress on margin improvement
and further growth avenues
    ** Notes that co's valuation is "attractive" following
recent share price pullback
    ** 15 of 23 brokerages rate the stock "buy" or higher, and
eight "hold"; with a median PT of $226- data compiled by LSEG
    ** RSG shares rose 36% last year

 (Reporting by Neil J Kanatt in Bengaluru)
 ((Neil.JKanatt@thomsonreuters.com;))