In a report released today, Joanna Gajuk from Bank of America Securities maintained a Buy rating on Service International, with a price target of $98.00.
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Joanna Gajuk’s rating is based on several key factors that highlight Service International’s (SCI) potential for growth and stability. The company’s visitation data for the third quarter indicates a stable trend, with a slight increase in daily visitations in September. This stability in visitation trends is expected to translate into a 5% growth in pre-need sales for the quarter, aligning with the company’s historical performance where visitation changes have been consistent with sales growth.
Additionally, SCI’s financial health is supported by strong cash flows and strategic capital deployment, which contribute to a positive long-term growth outlook. Despite slight declines in visitation in certain states, such as California and Florida, these were partially offset by growth in Texas, demonstrating resilience in key markets. The improvement in visitation trends at Rose Hills, SCI’s largest location, further underscores the company’s ability to manage and improve its operations. These factors collectively justify the Buy rating, with a price objective set at $98.00 USD, reflecting confidence in SCI’s future performance.