In a report released today, Scott Schneeberger from Oppenheimer reiterated a Buy rating on Service Corp International (SCI – Research Report), with a price target of $49. The company’s shares closed yesterday at $45.04.
“Anticipating a solid 2018 finish, momentum into 2019, and a strong long-term story, we’re increasing our target from $47 to $49. We’re maintaining our potentially conservative 2018E/2019E annual adjusted EPS of $1.81 (+17% y/y; $1.82 consensus; $1.77-$1.85 guidance)/$1.98 (+9% y/y; $1.99 consensus), respectively. Supporting our outlook are favorable y/y comparisons in Pre-Need Cemetery sales (4Q18-1H19), which we view as a primary SCI stock price driver, continued elevated Pre-Need Funeral sales via SCI’s relatively new Beacon sales tool, and SCI’s rollout of Cemetery sales longer term (2020E). We’re anticipating muted organic At-Need Funeral volume on tough y/y influenza comparisons, but view it as only a mild offset to the aforementioned drivers and already factored in the stock price. We reiterate Outperform on our outlook for reliable growth/FCF/return of capital.”
According to TipRanks.com, Schneeberger is a 5-star analyst with an average return of 8.2% and a 63.4% success rate. Schneeberger covers the Services sector, focusing on stocks such as General Finance, XPO Logistics, and United Parcel.
Currently, the analyst consensus on Service Corp International is a Moderate Buy with an average price target of $49.
Service Corp International’s market cap is currently $8.15B and has a P/E ratio of 17.06. The company has a Price to Book ratio of 5.47.
Based on the recent corporate insider activity of 50 insiders, corporate insider sentiment is negative on the stock. Most recently, in November 2018, Steven Tidwell, the Sr.V.P. Sales & Marketing of SCI sold 9,300 shares for a total of $426,777.
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Service Corp. International engages in the provision of death care products and services. It operates through the Funeral and Cemetery business segments.