Analyst Ratings February 18, 2026

Bernstein Keeps Republic Services at Market Perform After Slight Guidance Miss

Modest shortfall in fiscal 2026 guidance leaves Republic Services trailing peers on projected growth metrics

By Jordan Park RSG
Bernstein Keeps Republic Services at Market Perform After Slight Guidance Miss
RSG

Bernstein SocGen Group reaffirmed a Market Perform rating and a $220 price target on Republic Services following the company's fourth-quarter 2025 results. Republic's guidance for fiscal 2026 came in below peer projections across sales, adjusted EBITDA, and adjusted free cash flow growth, prompting Bernstein to expect modest relative underperformance versus Waste Management and Waste Connection.

Key Points

  • Bernstein SocGen Group confirmed a Market Perform rating and $220 price target on Republic Services after its fourth-quarter 2025 report.
  • Republic Services provided fiscal 2026 guidance that lags peers: 3.1% sales growth vs. 5.0%-5.5% for peers; 3.6% adjusted EBITDA growth vs. 6.0%-8.5%; 4.4% adjusted free cash flow growth vs. 29% and 13% for peers.
  • Analyst views vary: Goldman Sachs initiated coverage with a Buy and $255 target; Bernstein raised its price target to $220 from $205 while maintaining Market Perform; Stifel reiterated a Buy despite expecting lower-end growth in 2026.

Bernstein SocGen Group has reaffirmed its Market Perform rating on Republic Services and kept a $220.00 price target after the waste hauler released fourth-quarter 2025 results. The research firm judged the company's reported numbers and outlook to be slightly below consensus, leaving Republic behind competitors on near-term growth projections.

Republic’s guidance for fiscal 2026 showed sales growth of 3.1%, a pace notably below the 5.0% to 5.5% range forecast for peers Waste Management and Waste Connection. On profitability, adjusted EBITDA growth guidance of 3.6% also lagged the 6.0% to 8.5% range posted by those rivals. Adjusted free cash flow growth for Republic was guided to 4.4%, versus peer expectations of 29% and 13%.

Across the key metrics Bernstein flagged, the company’s outlook missed consensus by roughly 0.5% to 1.5%. In light of the guidance shortfall, Bernstein indicated it expects Republic Services to modestly underperform in trading relative to Waste Management and Waste Connection.

Year-to-date performance in the sector shows Waste Management up 7%, Republic Services up 4%, and Waste Connection down 9%, a backdrop that underscores relative positioning among the three companies.

Analysts outside Bernstein have taken differing views on Republic’s prospects. Goldman Sachs initiated coverage with a Buy rating and a $255 price target, highlighting the company’s leadership in portfolio quality and operational execution and noting Republic’s strong pricing performance since 2022. Bernstein itself has adjusted its price target higher, raising it to $220 from $205 while maintaining a Market Perform stance and citing the company’s safety profile and the successful integration of US Ecology. Stifel reiterated a Buy rating on Republic Services despite its view that 2026 revenue and EBITDA growth may sit at the lower end of industry peers.

These analyst actions reflect a range of opinions on the company’s near-term trajectory even as the reported guidance and results place Republic marginally behind its main competitors on fiscal 2026 expectations.


Key developments:

  • Bernstein retains Market Perform and $220 price target after Q4 2025 results.
  • Republic’s fiscal 2026 guidance trails peers on sales, adjusted EBITDA, and adjusted free cash flow growth.
  • Analysts diverge - Goldman Sachs starts coverage with Buy and $255 target; Stifel reiterates Buy; Bernstein raised its price target to $220 from $205.

Market context: The guidance miss contrasts with stronger peer projections, and Bernstein expects modest relative underperformance versus Waste Management and Waste Connection as a result.

Risks

  • The company’s fiscal 2026 guidance missing consensus by 0.5% to 1.5% could translate to weaker stock performance relative to peers - this impacts equity investors and sector-focused portfolios.
  • Lower guided growth for adjusted EBITDA and free cash flow introduces uncertainty for corporate valuation and near-term cash generation assumptions - relevant to fixed income and credit analysts.
  • Diverging analyst opinions create variability in market expectations, which may increase trading volatility as investors reconcile differing forecasts and price targets.

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