Devin Dodge, an analyst from BMO Capital, maintained the Hold rating on Waste Management (WM – Research Report). The associated price target was raised to $212.00.
Devin Dodge’s rating is based on Waste Management’s consistent performance and effective cost control measures within its core collection and disposal business. The company has shown strong quarterly results and is expected to maintain adjusted EBITDA growth above its annual target through the forecast period. However, despite these positive aspects, Dodge believes that the current market price already accounts for this optimistic outlook, suggesting limited potential for additional stock price appreciation. This has led to a Market Perform rating, indicating a neutral stance on the stock’s near-term prospects.
The Hold rating also considers the expected moderation in margin expansion starting in late 2024. Although Waste Management is likely to see continued improvement in EBITDA margins through the third quarter of 2024, the rate of this expansion is projected to slow down thereafter. The company’s financial guidance appears achievable, supported by significant efficiency gains, and the balance sheet provides flexibility for growth and shareholder returns. Despite raising the target price slightly to reflect earnings revisions, Dodge maintains a Hold rating due to the belief that sustainability-related investments and potential earnings upside are already reflected in the current valuation.
In another report released yesterday, RBC Capital also initiated coverage with a Hold rating on the stock with a $215.00 price target.
WM’s price has also changed moderately for the past six months – from $164.070 to $212.700, which is a 29.64% increase.
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Waste Management (WM) Company Description:
Headquartered in Texas and founded in 1987, Waste Management, Inc. provides waste management environmental services to residential, commercial, industrial, and municipal customers in North America. It provides services that range from collection and disposal to recycling and renewable energy generation.
