On Wednesday, BMO Capital adjusted its price target on shares of Republic Services (NYSE:RSG) stock, a waste management company, from $173.00 to $195.00. The firm has maintained a Market Perform rating on the stock, acknowledging the company's strong execution and the potential for continued margin expansion and earnings growth in 2024.
Republic Services has recently reported robust fourth-quarter results, with adjusted EBITDA reaching approximately $1.15 billion, surpassing both BMO Capital's estimate of $1.07 billion and the consensus of $1.06 billion by around 8%. Adjusted earnings per share also outperformed expectations, coming in at $1.41, compared to BMO Capital's projection of $1.31 and the consensus estimate of $1.29.
The positive variance in the company's financials was primarily attributed to contributions from acquisitions and solid waste margins that were better than anticipated. BMO Capital's analyst highlighted Republic Services' above-average margin expansion and earnings growth, which are expected to continue into the next year.
The new price target of $195.00 represents BMO Capital's revised expectation for Republic Services' share value, taking into account the company's latest earnings report and the potential for sustained growth and profitability.
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