UPDATE: Bank of America Merrill Lynch Reiterates Buy Rating, Raises PO on Service Corporation International
In a report published Monday, Bank of America Merrill Lynch reiterated its Buy rating on Service Corporation International (NYSE: SCI), and raised its price objective from $13.00 to $15.00.
BofA Merrill Lynch noted, “Dialog over a potential conversion to REIT status has lifted the shares, and SCI said it is exploring the opportunity. However, any decision is likely months away, and it is premature to speculate on an outcome given the complexities of the analysis. We view SCI more as an attractive stock for health care investors seeking alternatives in an environment where debate over the debt ceiling may limit appreciation for traditional health care services stocks. Rising pre-need sales suggest a long-awaited demographic opportunity is not too far in the future, when we expect organic growth.”
Service Corporation International closed on Friday at $13.60.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.