Republic Services (RSG+0.6%) edges higher after Goldman Sachs upgrades shares to Conviction Buy from Buy with a $147 price target, while dropping Oshkosh from its Conviction Buy List.
Forecasting double-digit unit profitability improvement for Republic Services in 2022, Goldman analyst Jerry Revich sees "significant scope for accelerating unit profitability and high returns green capex to drive positive earnings revisions and multiple expansion for the stock."
Goldman also rates Waste Management (NYSE:WM), Waste Connections (NYSE:WCN) and GFL Environment (NYSE:GFL) as Buys within the environmental services group.
The firm maintains its Buy rating on Oshkosh (OSK+0.2%) but removes the stock from its Conviction Buy List, seeing more upside to estimates and scope for multiple expansion at Republic on a risk-adjusted basis.
Republic Services has raised FY 2021 guidance multiple times, highlighting management's confidence in the company's near term performance, Valuentum writes in a bullish analysis posted recently on Seeking Alpha.