Goldman Sachs Group Inc. downgraded shares of Republic Services (NYSE:RSG) from a buy rating to a neutral rating in a report issued on Thursday, TheFlyOnTheWall.com reports. They currently have $36.00 target price on the stock.
“We downgrade RSG shares to Neutral from Buy as we believe 2014 consensus EPS forecasts are well calibrated, and valuation is fair (2% upside to our 12-month price target). Since we upgraded RSG to Buy on 10/5/11 shares are +26% vs. S&P 500 +56%. We reduce our 2014 and 2015 EPS estimate for RSG to $2.00 and $2.27 from $2.11 and $2.49 as we have better calibrated our pricing outlook for RSG to reflect the latest commentary on pricing and volume from industry participants at our Industrial conference last week. Our 2014 estimates for RSG reflect +2.2% volume and +1.6% pricing vs. our previous estimate of 2.2% and 2.4%, and 2013 of +1.0% and +1.3%. We rate RSG shares Neutral as we believe our outlook for a continued gradual recovery in RSG’s volume/pricing is reflected in valuation. For longer-term oriented investors, we are constructive on RSG’s strong market position within the relatively consolidated US solid waste industry, focusing on increasing its margins, returns on capital, and FCF generation through relentless focus on costs and rational collection and landfill pricing, and focus on returning cash to shareholders (2.6% dividend yield).,” the firm’s analyst commented.
Several other analysts have also recently commented on the stock. Analysts at Wedbush downgraded shares of Republic Services from an outperform rating to a neutral rating in a research note to investors on Monday, November 4th. They now have a $35.00 price target on the stock, down previously from $38.00. Analysts at Zacks upgraded shares of Republic Services from a neutral rating to an outperform rating in a research note to investors on Friday, November 1st. They now have a $40.00 price target on the stock. Five analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. The stock currently has an average rating of Hold and a consensus price target of $37.14.
Republic Services (NYSE:RSG) opened at 34.72 on Thursday. Republic Services has a one year low of $27.60 and a one year high of $35.61. The stock’s 50-day moving average is $33.76 and its 200-day moving average is $33.98. The company has a market cap of $12.502 billion and a price-to-earnings ratio of 26.31.
Republic Services (NYSE:RSG) last released its earnings data on Thursday, October 31st. The company reported $0.55 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.49 by $0.06. The company had revenue of $2.17 billion for the quarter, compared to the consensus estimate of $2.12 billion. During the same quarter in the prior year, the company posted $0.42 earnings per share. The company’s quarterly revenue was up 5.8% on a year-over-year basis. Analysts expect that Republic Services will post $1.90 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Wednesday, January 15th. Investors of record on Thursday, January 2nd will be given a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a yield of 2.99%. The ex-dividend date of this dividend is Monday, December 30th.
Republic Services, Inc (NYSE:RSG) is a provider of services in the domestic non-hazardous solid waste industry.
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