Stabilizing Demand, Resilient Cash Generation, and Attractive Valuation Support Buy Rating on Service International

Service International, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Joanna Gajuk from Bank of America Securities maintained a Buy rating on the stock and has a $98.00 price target.

Joanna Gajuk has given his Buy rating due to a combination of factors related to Service International’s operating trends, financial profile, and positioning. While visitation data from Placer.ai shows a modest year-over-year decline in Q4 traffic, the improvement versus Q3 suggests stabilizing or improving demand for cemetery pre-need sales, which is a positive indicator for future revenue. The company is also benefiting from its concentration in higher-income customer segments, where discretionary spending appears more resilient, supporting a more durable long-term growth trajectory. Additionally, Gajuk highlights SCI’s strong cash generation and the opportunity to deploy capital effectively, which underpins confidence in shareholder returns and balance sheet management.

Despite softer-than-normal December visitation trends, the data still indicates encouraging regional dynamics, such as relatively better performance in California overall and growth in Florida, helping offset weaker spots like Rose Hills. Gajuk views the current share price as attractive relative to her price objective of $98, implying meaningful upside potential from the recent trading level. The combination of improving sequential visitation trends, solid free cash flow, and a favorable long-term demand outlook justifies maintaining a positive stance on the stock. Overall, these elements together support her Buy rating on Service International.

Gajuk covers the Healthcare sector, focusing on stocks such as BrightSpring Health Services, Inc., Acadia Healthcare, and Addus Homecare. According to TipRanks, Gajuk has an average return of 1.3% and a 54.08% success rate on recommended stocks.