Nomura Securities Downgrades ServiceMaster (SERV) to Reduce, Sees 14% Downside
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
Nomura Securities downgraded ServiceMaster (NYSE: SERV) from Neutral to Reduce with a price target of $31.00 (from $36.00), suggesting 14% downside.
Analyst Dan Dolev commented, "At Terminix (pest control), we expect the growth gap to peers to linger - hurt by execution mishaps, debatable M&A strategy/headwinds, and customer/employee attrition. We think the solution is higher-touch service; however, that could hurt margins by 100-200bps. For AHS (home warranty), maintaining growth at elevated levels amid deteriorating customer reviews means marketing increases could be perpetual. AHS growing 5x faster than Terminix dilutes the multiple."
Shares of ServiceMaster closed at $36.16 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Cowen Downgrades Under Armour, Inc. (UA) to Market Perform
- Jefferies Cuts Price Target on Waters Corp. (WAT) Following Revenue Miss
- UPDATE: Oppenheimer Downgrades Williams-Sonoma (WSM) to Perform
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Downgrades, Hot Downgrades
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!