BMO Capital analyst Devin Dodge has maintained their neutral stance on WM stock, giving a Hold rating yesterday.
Devin Dodge has given his Hold rating due to a combination of factors that highlight both the strengths and challenges facing Waste Management. The company is executing well, with promising near-term M&A prospects and ongoing integration of Stericycle, which could exceed synergy targets in the medium term. However, the optimistic upper end of its 2025 guidance seems contingent on higher commodity values and increased acquisition contributions, which may not materialize.
While Waste Management’s core pricing remains strong, surpassing unit cost inflation, and the company is expected to benefit from wildfire clean-up efforts, the full-year EBITDA growth target suggests a significant ramp-up that might require favorable commodity prices. Despite some challenges, such as reduced commodity values impacting the SID division, there is improving visibility into cost synergies, with opportunities to optimize sales coverage and back-office efficiencies. The acquisition pipeline is robust, with increased spending targets, but these factors are already reflected in the current valuation, leading to a Hold rating.
In another report released yesterday, Bank of America Securities also reiterated a Hold rating on the stock with a $244.00 price target.
WM’s price has also changed slightly for the past six months – from $219.110 to $228.800, which is a 4.42% increase.