Analyst Joanna Gajuk from Bank of America Securities reiterated a Buy rating on Service International and keeping the price target at $98.00.
Meet Samuel – Your Personal Investing Prophet
- Start a conversation with TipRanks’ trusted, data-backed investment intelligence
- Ask Samuel about stocks, your portfolio, or the market and get instant, personalized insights in seconds
Joanna Gajuk has given his Buy rating due to a combination of factors including recovering funeral volumes, sustained strength in cemetery pre-need sales, and a favorable long-term demographic backdrop. Management expects the funeral volume declines seen early in the year to moderate over the remaining quarters, while strong mid‑single‑digit pre-need cemetery growth, supported by effective CRM initiatives and salesforce expansion, should translate into margin gains.
Looking further out, the aging of baby boomers is expected to lift at-need volumes over the next several years, reinforcing the company’s growth trajectory. In addition, SCI’s sizable $17 billion preneed backlog and robust free cash flow generation provide good earnings visibility and the capacity to fund dividends, acquisitions, new construction, and buybacks, supporting the unchanged $98 price target and justifying the reaffirmed Buy recommendation.
According to TipRanks, Gajuk is a 2-star analyst with an average return of 0.0% and a 48.41% success rate. Gajuk covers the Healthcare sector, focusing on stocks such as Addus Homecare, Option Care Health, and Brookdale Senior Living.
In another report released on May 1, J.P. Morgan also maintained a Buy rating on the stock with a $100.00 price target.