Service Corp International (SCI) is unlikely to be hurt much by elevated oil prices and AI due its status as a leader in a resilient industry, funeral goods and services, that benefits from an aging baby boomer population, Oppenheimer said in a Thursday note.
Following disruption caused by the COVID-19 pandemic, Service Corp posted adjusted EPS growth of more than 9% in 2025, returning to its previous run of compounded adjusted EPS at 14% pre-pandemic, Oppenheimer analysts said. They added that they expect the growth to continue at around 10% year over year into 2026 and later.
The company is undertaking initiatives aimed at increasing pre-need sales in its Cemetery segment, including boosting its sales force, expanding the use of seminars, and using AI to streamline its customer relationship management system, according to the note.
The initiatives, along with likely favorable year-over-year comparisons, could lead to better-than-expected Cemetery pre-need sales growth, the analysts said.
Oppenheimer maintained company's stock rating at outperform and raised the price target to $97 from $94.
Price: 83.88, Change: +1.02, Percent Change: +1.22
Comments