Royal Bank Of Canada Forecasts Strong Price Appreciation for Republic Services (NYSE:RSG) Stock

Key Points

• Royal Bank of Canada raised its price target on Republic Services to $267 and kept an "outperform" rating, implying roughly a 33.7% upside from the prior close; the Street consensus remains a "Moderate Buy" with a $246 target (11 Buy, 11 Hold).
• Republic Services beat Q1 EPS ($1.70 vs. $1.64) with margin expansion and strong operating/free cash flow—and management affirmed the quarterly dividend—but the stock is trading near $199, below its 50/200‑day averages and close to its 52‑week low, creating technical and valuation headwinds.

Republic Services (NYSE:RSG - Get Free Report) had its target price upped by equities research analysts at Royal Bank Of Canada from $265.00 to $267.00 in a report issued on Friday,Benzinga reports. The firm currently has an "outperform" rating on the business services provider's stock. Royal Bank Of Canada's price target would suggest a potential upside of 33.66% from the company's previous close.

Other research analysts also recently issued research reports about the company. Wolfe Research assumed coverage on Republic Services in a research note on Friday, March 13th. They set a "peer perform" rating on the stock. Canadian Imperial Bank of Commerce reaffirmed an "outperform" rating and issued a $249.00 target price on shares of Republic Services in a report on Friday. UBS Group increased their price target on shares of Republic Services from $225.00 to $240.00 and gave the stock a "neutral" rating in a research note on Thursday, March 5th. Scotiabank dropped their price objective on shares of Republic Services from $246.00 to $242.00 and set a "sector perform" rating on the stock in a research note on Wednesday, January 21st. Finally, Oppenheimer reduced their target price on shares of Republic Services from $256.00 to $255.00 and set an "outperform" rating for the company in a report on Friday, January 23rd. Eleven research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $246.00.

Republic Services Stock Down 0.9%

Shares of NYSE RSG traded down $1.79 during mid-day trading on Friday, reaching $199.76. The company had a trading volume of 1,209,402 shares, compared to its average volume of 1,494,783. Republic Services has a 52-week low of $198.24 and a 52-week high of $258.75. The stock has a market cap of $61.72 billion, a P/E ratio of 29.16, a PEG ratio of 3.31 and a beta of 0.43. The company has a current ratio of 0.64, a quick ratio of 0.64 and a debt-to-equity ratio of 1.08. The firm has a 50 day simple moving average of $217.64 and a two-hundred day simple moving average of $215.64.

Republic Services (NYSE:RSG - Get Free Report) last released its quarterly earnings data on Friday, May 8th. The business services provider reported $1.70 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.64 by $0.06. Republic Services had a net margin of 12.90% and a return on equity of 18.44%. The company had revenue of $4.11 billion during the quarter, compared to the consensus estimate of $4.10 billion. During the same quarter in the prior year, the firm posted $1.58 earnings per share. Republic Services's revenue for the quarter was up 2.6% on a year-over-year basis. Sell-side analysts predict that Republic Services will post 7.22 earnings per share for the current year.

Institutional Trading of Republic Services

Several hedge funds have recently modified their holdings of the business. Oslo Pensjonsforsikring AS purchased a new stake in shares of Republic Services during the 1st quarter worth $95,000. Meeder Advisory Services Inc. increased its holdings in shares of Republic Services by 25.9% in the 1st quarter. Meeder Advisory Services Inc. now owns 6,101 shares of the business services provider's stock valued at $1,336,000 after purchasing an additional 1,254 shares in the last quarter. Dimensional Fund Advisors LP lifted its stake in shares of Republic Services by 8.2% in the first quarter. Dimensional Fund Advisors LP now owns 1,734,798 shares of the business services provider's stock valued at $380,008,000 after purchasing an additional 131,298 shares during the period. Parallel Advisors LLC grew its position in Republic Services by 6.1% during the first quarter. Parallel Advisors LLC now owns 4,239 shares of the business services provider's stock worth $929,000 after buying an additional 244 shares during the period. Finally, AlphaCentric Advisors LLC increased its holdings in Republic Services by 5.9% in the first quarter. AlphaCentric Advisors LLC now owns 903 shares of the business services provider's stock valued at $198,000 after buying an additional 50 shares in the last quarter. 57.73% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Republic Services

Here are the key news stories impacting Republic Services this week:

• Positive Sentiment: Quarterly beat: RSG reported $1.70 EPS vs. $1.64 consensus and revenue of $4.11B (roughly in line with estimates), showing year‑over‑year EPS growth and modest revenue growth — a near‑term earnings upside that supports the fundamentals. RSG Q1 Earnings Beat
• Positive Sentiment: Margin and cash‑flow strength: Adjusted EBITDA margin expanded to ~32.1% and management generated strong operating cash flow (~$1.23B) and adjusted free cash flow (~$984M), which supports dividends, buybacks and acquisitions. PR News Release
• Positive Sentiment: Dividend affirmed: RSG declared a quarterly dividend of $0.625 per share (annualized yield ~1.2%), showing continued capital return to shareholders. Dividend Announcement
• Neutral Sentiment: Detailed commentary available: Full earnings and management discussion from the call and transcript provide more color on volume trends, pricing, and 2H cadence — useful for reassessing guidance and margins. Earnings Transcript Call Transcript
• Neutral Sentiment: Analyst preview context: Street estimates anticipated modest EPS growth heading into the print; the result largely matched those expectations, so revisions will determine follow‑through. Earnings Preview
• Negative Sentiment: Volume headwinds and revenue lift limited: Management noted volume drag even as pricing and cost discipline drove margin gains — revenue was essentially in line with estimates, which may cap upside surprise potential. Volume Drag Mention Sales In Line
• Negative Sentiment: Technical and valuation pressure: Shares trade below their 50/200‑day averages and near the 12‑month low, so even a modest beat can trigger profit‑taking or caution among momentum traders. (See market data sources for chart context.)

About Republic Services

Republic Services, Inc is a leading provider of non-hazardous solid waste and recycling services in the United States. The company offers a broad range of waste management solutions to residential, commercial, industrial and municipal customers, positioning itself as a full-service partner for everyday waste collection as well as specialized disposal needs.

Republic's core operations include curbside and commercial collection, transfer and hauling, materials recovery and recycling facilities, and landfill disposal.

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