April 11, 2018 / 4:27 PM / 8 months ago

BUZZ-Republic Services: Raymond James downgrades on lack of upside in stock

** Solid-waste management company’s shares down 3 pct at $65.50, third biggest decliner on the S&P 500 amid a market gripped by rising U.S.-Russia tensions

** Raymond James analyst, Patrick Brown downgrades stock to “outperform” from “strong buy”, writes waste services industry to be hurt by global recovered paper markets that clearly have been adversely impacted by recent actions taken in China

** Brown adds, the outright banning of mixed papers import and a significant decrease in allowable contamination to reflect on RSG’s earnings

** Brown rated 4/5 on recommendation accuracy on RSG by TR StarMine, sees a lack of adequate upside in RSG’s stock price

** Key narrative in Q1 for solid waste companies will likely revolve around recycling given the precipitous downward move in recycled commodity prices - Brown

** Brown says Waste Connections and Casella Waste Systems have less recycling exposure and/or more protection to commodity prices movements

** 12-month forward PE for RSG was 21.31

** RSG shares fell 3 pct YTD (Reporting by Shreyashi Sanyal in Bengaluru)

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