Analyst Toni Kaplan from Morgan Stanley maintained a Hold rating on Waste Management (WM – Research Report) and keeping the price target at $235.00.
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Toni Kaplan has given his Hold rating due to a combination of factors that were discussed during Waste Management’s Investor Day. The company outlined its growth targets for 2025 to 2027, which include a 9.4% compound annual growth rate (CAGR) in revenue and an 11.1% CAGR in adjusted operating EBITDA. Additionally, Waste Management is focusing on sustainability and healthcare synergies, projecting significant growth in these areas.
Despite these positive projections, there are some concerns that have led to a conservative stance. The unexpected weather impacts in the first quarter of 2025 and declining commodity prices are expected to affect brokerage revenue in the second quarter. These factors, coupled with the company’s decision not to raise its long-term guidance, suggest that while the growth outlook is promising, there are uncertainties that justify a Hold rating.