(RSG) Republic Services – Bear of the Day

We reaffirm our Underperform recommendation on Republic Services, Inc. (RSG) with a target price of $26. The company reported adjusted earnings of $0.59 per share in the quarter, beating the Zacks Consensus Estimate of $0.49. Total revenues decreased 1.2% to $2.06 billion, missing the Zacks Consensus Estimate of $2.11 billion.

Margins are expected to remain constrained as The company has less exposure to higher margin generating Disposal services. Moreover, soft volumes will be headwinds due to the uncertain economic conditions in the U.S.

We are reiterating our Underperform recommendation on Republic Services. Our price target of $26 is based on 13.6x our fiscal 2012 earnings estimate.

Zacks Investment Research

About vitalstocks

This is a sample profile field. Vitalstocks is the operating company for Stockbloghub. This will place the picture of the author or company in the profile. Here is another extra line of information.

Comments

Powered by Facebook Comments


Similar Posts: | | Industrial Goods | Waste Management

RSS feeds: Republic Services Inc. | RSG | Industrial Goods | Waste Management |

Other Posts by | RSS Feed for this author