UPDATE: Goldman Sachs Downgrades Republic Services to Neutral, Reiterates $36 PT on Valuation

In a report published Thursday, Goldman Sachs analyst Alex Ovshey downgraded the rating on

from Buy to Neutral, but reiterated the $36.00 price target. In the report, Goldman Sachs noted, “We downgrade RSG shares to Neutral from Buy as we believe 2014 consensus EPS forecasts are well calibrated, and valuation is fair (2% upside to our 12-month price target). Since we upgraded RSG to Buy on 10/5/11 shares are +26% vs. S&P 500 +56%. We reduce our 2014 and 2015 EPS estimate for RSG to $2.00 and $2.27 from $2.11 and $2.49 as we have better calibrated our pricing outlook for RSG to reflect the latest commentary on pricing and volume from industry participants at our Industrial conference last week. Our 2014 estimates for RSG reflect +2.2% volume and +1.6% pricing vs. our previous estimate of 2.2% and 2.4%, and 2013 of +1.0% and +1.3%. We rate RSG shares Neutral as we believe our outlook for a continued gradual recovery in RSG's volume/pricing is reflected in valuation. For longer-term oriented investors, we are constructive on RSG's strong market position within the relatively consolidated US solid waste industry, focusing on increasing its margins, returns on capital, and FCF generation through relentless focus on costs and rational collection and landfill pricing, and focus on returning cash to shareholders (2.6% dividend yield).” Republic Services closed on Wednesday at $34.94.