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RSG: Labor Gains With 46% Raises Will Support Future Share Strength

Analysts Lower Republic Services Price Target Amid Labor Wins and Slight Revenue Growth Decline

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AnalystConsensusTarget
Not Invested
Published 06 Aug 2024

Update shared on 07 Dec 2025

Fair value Increased 0.14%
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Analysts have nudged their price target on Republic Services slightly higher to approximately 247 dollars per share. This reflects modest improvements in long term profit margin expectations and valuation multiples, while revenue growth and discount rate assumptions remain largely unchanged.

What's in the News

  • Republic Services lowered its earnings outlook for 2025, guiding revenue toward the low end of its previously announced full-year range (Corporate Guidance).
  • The company completed a major share repurchase tranche, buying back 5,073,578 shares, or about 1.62% of shares outstanding, for approximately 1.07 billion dollars under the October 26, 2023 authorization (Buyback Tranche Update).
  • Teamsters won a nationwide strike against Republic Services, securing raises of up to 46 percent, stronger labor protections, and improved health and welfare benefits for more than 2,000 sanitation workers across multiple states (Labor-related Announcement).
  • Workers represented by Teamsters Local 25 ratified a five-year contract with 46 percent wage increases and enhanced health benefits following a nearly three-month strike, while Teamsters in Georgia and Ohio continue picketing for a new agreement (Labor-related Announcement).

Valuation Changes

  • Fair Value Estimate was nudged slightly higher to approximately 247 dollars per share from about 246.67 dollars, reflecting a minor upward adjustment.
  • Discount Rate edged down marginally to around 7.26 percent from about 7.27 percent, implying a slightly lower required return.
  • Revenue Growth eased very slightly to roughly 5.09 percent from about 5.09 percent previously, indicating virtually unchanged long term growth expectations.
  • Net Profit Margin increased fractionally to about 14.10 percent from roughly 14.10 percent, signaling a modest improvement in margin assumptions.
  • Future P/E ticked up slightly to around 33.98 times from about 33.94 times, suggesting a marginally richer valuation multiple being applied.

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