Wedbush Downgrades Republic Services (RSG) to Neutral; Price Competition Causing Challenges
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Price: $218.27 +1.40%
Rating Summary:
18 Buy, 15 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 13 | New: 26
Rating Summary:
18 Buy, 15 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 13 | New: 26
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Wedbush downgraded Republic Services (NYSE: RSG) from Outperform to Neutral, price target lowered from $31 to $29.
Analyst, Al Kaschalk, said, "Our downgrade is predicated on: (i) Replacement/retention pricing is negative; (ii) Customer churn has increased and remains elevated; and (iii) Economic activity suggests flat volume story. As a result, we have reduced our expectation for EBITDA margin expansion in the near term until there are signs that flat volumes can drive EBITDA margin at least in the 30% range. As we see few near-term catalysts and a sector that needs economic activity to drive volumes, we believe the shares could trade in a narrow range. For longer-term investors seeking a solid FCF story, growing dividend and share price providing a 3.3% dividend yield, we would use weakness to add or build a position."
For an analyst ratings summary and ratings history on Republic Services click here. For more ratings news on Republic Services click here.
Shares of Republic Services closed at $26.72 yesterday.
Analyst, Al Kaschalk, said, "Our downgrade is predicated on: (i) Replacement/retention pricing is negative; (ii) Customer churn has increased and remains elevated; and (iii) Economic activity suggests flat volume story. As a result, we have reduced our expectation for EBITDA margin expansion in the near term until there are signs that flat volumes can drive EBITDA margin at least in the 30% range. As we see few near-term catalysts and a sector that needs economic activity to drive volumes, we believe the shares could trade in a narrow range. For longer-term investors seeking a solid FCF story, growing dividend and share price providing a 3.3% dividend yield, we would use weakness to add or build a position."
For an analyst ratings summary and ratings history on Republic Services click here. For more ratings news on Republic Services click here.
Shares of Republic Services closed at $26.72 yesterday.
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