Goldman Sachs analyst Jerry Revich has reiterated their bullish stance on WM stock, giving a Buy rating today.
Jerry Revich has given his Buy rating due to a combination of factors including a strong first-quarter performance that surpassed margin expectations. Waste Management (WM) achieved a margin increase significantly above the prior year’s, suggesting the company’s ability to effectively manage and grow profits. Moreover, the revised margin guidance indicates potential for further upside, reflecting a positive outlook on the company’s profitability. Revich’s confidence is also underpinned by Waste Management’s pricing strategies for the forthcoming year, which are set against a backdrop of similar inflationary conditions as in the current year.
Additionally, Revich’s assessment highlights Waste Management’s successful implementation of efficiency initiatives and the improvement in labor productivity, as evidenced by stabilizing turnover rates. These factors have contributed to a minimal rise in the cost per unit, which remained well below the growth rate of yields. This discrepancy between cost and yield growth underscores WM’s operational efficiency and cost control measures, reinforcing the rationale behind the Buy rating. Such a combination of controlled costs and strong pricing power positions Waste Management favorably for sustained unit profitability, justifying the optimistic stance taken by Jerry Revich in his analyst recommendation report.
In another report released today, Stifel Nicolaus also maintained a Buy rating on the stock with a $227.00 price target.
Based on the recent corporate insider activity of 93 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of WM in relation to earlier this year.
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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.
