TD Cowen analyst James Schumm maintained a Buy rating on Waste Management today and set a price target of $270.00.
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James Schumm has given his Buy rating due to a combination of factors that highlight both current strength and future upside for Waste Management. He notes that the company’s core solid waste operations are performing robustly, and prior investments in sustainability initiatives are now translating into accelerating free cash flow. Although the 2026 EBITDA outlook appears soft versus consensus after adjusting for an accounting benefit, he interprets the margin guidance as deliberately cautious rather than a signal of structural weakness. Schumm also underscores management’s solid execution in the core business and expresses confidence in their ability to enhance overall profitability over time.
At the same time, he acknowledges that the WM Healthcare (Stericycle) segment is a drag on consolidated margins, with its roughly mid-teens EBITDA margin level materially below the corporate average. The underperformance of this unit and the company’s tempered stance relative to prior 2027 targets have weighed on investor sentiment and near-term stock performance versus both the S&P 500 and sector peers. However, he points to identified synergies, operational improvements, and progress in customer service as catalysts that could support better Healthcare financial performance going forward. In his view, this combination of strong core fundamentals, improving cash generation, conservative guidance, and potential upside from Healthcare restructuring supports a constructive long-term investment case, justifying his Buy recommendation.
According to TipRanks, Schumm is ranked #7919 out of 11984 analysts.