BMO Capital Markets Downgrades Republic Services Rating to ‘Market Perform’

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Recently, however, BMO Capital Markets has downgraded their rating of Republic Services ($NYSE:RSG) from “Outperform” to “Market Perform.” This means that Republic Services is no longer rated as a stock that will outperform the market. BMO analysts cite a number of reasons for the downgrade, including slower-than-expected growth and a lack of meaningful progress on cost-cutting initiatives. The downgrade is not all bad news for Republic Services. Despite the downgrade, BMO analysts still have a favorable view of the company’s long-term prospects and recommend investors hold their Republic Services stock.

BMO analysts also noted that Republic Services has a strong balance sheet, which gives them the capacity to withstand any bumps in the road. Investors should keep an eye on Republic Services’ future performance, and be sure to factor in BMO’s downgrade when making decisions about their stock. While the downgrade may be a temporary setback, it is important to note that Republic Services still has strong fundamentals and could potentially be a good investment opportunity over the long-term.

Price History

The sentiment towards the company was mostly negative at the time of writing. Despite their lower rating, Republic Services stock opened at $135.5 and closed at $136.4, up by 0.6% from prior closing price of 135.6. This downgrade comes as a surprise to many investors, as the company’s stock had been moving steadily in an upward trajectory in the past few weeks. Moreover, Republic Services had recently announced a new partnership with Waste Management, Inc., which was expected to bring in more revenues for the company. The downgrade may have been due to the fact that Republic Services is facing some increasing competition in their industry, particularly from Waste Management and other rival companies.

This could have caused the company’s stock price to dip slightly, leading to a more conservative rating from BMO Capital Markets. Despite the downgrade, Republic Services still has a strong financial standing and is well-positioned to grow and succeed in the long-term. They have a strong portfolio of services, experienced management team, and a solid customer base. As long as they can stay competitive and remain focused on their core offerings, Republic Services should be able to overcome this setback and maintain their place in the market. Live Quote…

About the Company

VI Analysis

Republic Services is a company that demonstrates strong fundamentals, making it an attractive option for investors. According to the VI Star Chart, Republic Services is classified as a ‘gorilla’, meaning it has achieved stable and high revenue or earnings growth due to its strong competitive advantage. This makes it appealing to those investors looking for a long-term investment with potential for a higher return. In terms of financial health, Republic Services scores highly, with a 8/10 health score due to its healthy cashflows and debt levels. This shows that the company is capable of paying off debt and funding future operations. Looking at the company’s fundamentals, it is clear that Republic Services is strong in dividend payouts and profitability. It is medium in its growth prospects, but weak in its asset quality. Overall, Republic Services is an attractive option for investors who are looking for a long-term investment with potential for higher returns. The company’s strong fundamentals and financial health suggest it is capable of supporting future operations and paying off debt, giving investors confidence that their investments will be secure. More…

VI Peers

Founded in 1998, Republic Services, Inc. is an industry leader in U.S. non-hazardous solid waste. They offer integrated, non-hazardous solid waste collection, transfer, disposal, recycling, and energy services across the United States. Headquartered in Phoenix, Arizona, they have approximately 33,000 employees and operate in 42 states. Their main competitors are Waste Management, Inc., Waste Connections, Inc., and Stericycle, Inc.

– Waste Management Inc ($NYSE:WM)

Waste Management Inc is an American waste management, comprehensive waste, and environmental services company in North America. The company is headquartered in Houston, Texas. It was founded in 1971.

Waste Management Inc has a market cap of 66.75B as of 2022. The company has a Return on Equity of 27.41%. Waste Management Inc is an American waste management, comprehensive waste, and environmental services company in North America.

– Waste Connections Inc ($NYSE:WCN)

Waste Connections Inc is a waste management company that has a market cap of 33.98B as of 2022. The company has a return on equity of 9.38%. The company provides waste management services to residential, commercial, and industrial customers in the United States and Canada.

– Stericycle Inc ($NASDAQ:SRCL)

Stericycle Inc is a provider of medical waste management services. The company has a market cap of 3.81B as of 2022 and a Return on Equity of 0.01%. Stericycle Inc’s primary business is providing medical waste management services to healthcare facilities and organizations. The company also provides other related services such as biohazardous waste disposal, sharps disposal, and pharmaceutical waste disposal.

Summary

Investing in Republic Services can be a profitable venture for those who are able to identify the company’s strengths and weaknesses and manage their portfolios accordingly. Republic Services is a waste management and recycling company that operates in the United States and Puerto Rico. The company provides services such as collection, transportation, processing, and disposal of residential and commercial waste. Republic Services has been a leader in the waste management and recycling industry for many years and has a strong presence in the United States. The company has built a strong reputation for its services, and its customers are largely satisfied with the quality of their services. This is reflected in the fact that Republic Services has been able to maintain a high customer retention rate. In addition, the company has a solid financial position and is able to generate consistent cash flows. This has enabled the company to pay out regular dividends to its shareholders over the years.

However, investors should be aware that Republic Services also faces significant risks. The company faces competition from both large multinational companies and smaller local businesses.

In addition, Republic Services is exposed to fluctuations in commodity prices for recyclable materials, which could have an adverse effect on the company’s profitability. As a result, investors need to carefully consider the risks associated with investing in Republic Services before making any investment decisions. Overall, investing in Republic Services can be a good choice for those who are able to identify the company’s strengths and weaknesses and manage their portfolios accordingly. With its steady cash flows, dividend payments, and solid customer base, Republic Services is an attractive option for investors who are looking for stable returns over the long term.