Republic Services, the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Michael Feniger from Bank of America Securities reiterated a Buy rating on the stock and has a $241.00 price target.
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Michael Feniger has given his Buy rating due to a combination of factors tied to Republic Services’ long-term growth and earnings visibility. He emphasizes that the company’s core business remains structurally attractive, supported by pricing power that is expected to outpace cost inflation and by ongoing efforts to shift contract indexing away from headline CPI toward more favorable benchmarks. While he acknowledges near-term headwinds—such as tougher comparisons from prior profitable landfill projects, weaker commodity prices, and softness in the industrial economy—he views these as temporary issues that mainly dampen margin expansion in 2026 rather than undermine the long-term story.
Feniger also highlights the significant upside in the Environmental Services segment, where Republic holds a relatively small but strategically positioned business within a much larger industrial waste market that remains fragmented and difficult to replicate. He notes that recent industry transactions in hazardous waste underscore the strategic value of these assets and support the company’s consolidation strategy. In addition, Republic’s investments in industrial waste over the past few years position it to benefit disproportionately when manufacturing activity and ISM indicators recover, with higher service frequency translating into attractive incremental margins. Despite trimming his price objective to reflect more muted near-term margin expansion, he still sees a favorable risk/reward profile supported by solid free cash flow conversion and long-term margin potential, justifying a continued Buy rating.
Feniger covers the Industrials sector, focusing on stocks such as Caterpillar, Paccar, and Agco. According to TipRanks, Feniger has an average return of 11.0% and a 64.00% success rate on recommended stocks.
In another report released on December 9, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $234.00 price target.