Republic Services initiated with an Overweight at Wells Fargo

Wells Fargo initiated coverage of Republic Services with an Overweight rating and $180 price target. The analyst sees “multiple ways to win” for investors due to company’s geographic and market mix, upside potential to fiscal 2024 targets, and “further optionality through digital unlocking higher lifetime customer value and lowering churn.” Republic’s leading Sunbelt exposure provides an avenue into high growth markets such as Arizona/Texas/Florida/Georgia/Southern California, the analyst tells investors in a research note. The firm says this sets up the company for higher levels of commercial activity and economic growth, which is a “virtuous cycle that provides volume support.”