Waste Management, the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Devin Dodge from BMO Capital maintained a Hold rating on the stock and has a $248.00 price target.
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Devin Dodge has given his Hold rating due to a combination of factors influencing Waste Management’s current and future performance. Despite facing short-term challenges from commodity prices, the company is expected to achieve low-double-digit EBITDA growth over the intermediate term. The forecasted free cash flow growth is strong, particularly as sustainability-related expenses decrease. Additionally, Waste Management’s active mergers and acquisitions pipeline, along with its ability to self-fund these deals, presents potential upside.
However, Dodge believes that much of this optimism is already reflected in the current stock valuation, which justifies the Hold rating. While the company anticipates modest volume growth in its collection and disposal operations, and benefits from recent legislative changes like the One Big Beautiful Act, these factors are balanced by ongoing challenges such as cost inflation and the shedding of lower-margin residential tons. Consequently, the current valuation appears to capture these dynamics, supporting the decision to maintain a Hold rating.
In another report released today, UBS also maintained a Hold rating on the stock with a $265.00 price target.
Based on the recent corporate insider activity of 98 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.