J.P. Morgan Meets With RSG Management

J.P. Morgan recently met with the management of Republic Services Inc. RSG. RSG said volumes are steadily improving as the activity levels increasing in several regions are broad based, suggesting it should prove to be sustainable. Pricing remains disciplined as municipal pricing is expected to gradually improve. RSG cited continued pricing discipline, supporting JPM's belief that EBITDA margins should continue to expand this year and next. RSG has not seen any notable change in behavior from municipal customers in response to challenging fiscal conditions, though continued budget pressure could ultimately result in some privatizations, and could limit price resets under municipal contract renewals. J.P. Morgan has an Overweight rating on RSG RSG closed Thursday at $30.43