Analyst Joanna Gajuk of Bank of America Securities reiterated a Buy rating on Service International (SCI – Research Report), retaining the price target of $98.00.
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Joanna Gajuk has given her Buy rating due to a combination of factors related to Service International’s performance and financial outlook. Despite a slight miss in funeral volumes, the company achieved a notable EBITDA beat, largely driven by better-than-expected Cemetery sales. This performance suggests a solid foundation for future financial stability.
Moreover, the company’s cash flow prospects remain strong, with a 5% yield that indicates potential upside from strategic capital deployment. While the guidance for operating cash flows was slightly below consensus, the expected growth aligns with historical trends. Additionally, pre-need Cemetery sales have shown significant growth, supporting the company’s revenue and margin expectations. These elements contribute to a positive outlook, prompting the reaffirmation of the Buy rating with a price objective of $98.
Based on the recent corporate insider activity of 73 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SCI in relation to earlier this year.