On Oct 31, major Wall Street analysts update their ratings for $Waste Management (WM.US)$, with price targets ranging from $225 to $255.
Morgan Stanley analyst Toni Kaplan maintains with a hold rating, and adjusts the target price from $214 to $227.
UBS analyst Jon Windham maintains with a hold rating, and adjusts the target price from $205 to $226.
Jefferies analyst Stephanie Moore maintains with a buy rating, and adjusts the target price from $256 to $255.
TD Cowen analyst James Schumm maintains with a buy rating, and adjusts the target price from $235 to $250.
Oppenheimer analyst Noah Kaye maintains with a buy rating, and adjusts the target price from $224 to $230.
Furthermore, according to the comprehensive report, the opinions of $Waste Management (WM.US)$'s main analysts recently are as follows:
Following a 'solid' Q3 report, the implied Q4 outlook is viewed as 'very achievable,' and the setup for 2025 is considered 'far more interesting.'
The company's Q3 earnings surpassed expectations, which is seen as a positive indicator of its consistent core unit profitability growth. Additionally, there is optimism surrounding the visible earnings increase due to maturing green capital expenditures and the enhancement of free cash flow conversion.
The company is poised to achieve exceptional growth in 2025 due to a mix of enhanced returns from its investments related to sustainability, strategic acquisitions, and inherent advancements in its solid waste segment. Nonetheless, it's assessed that this positive outlook is considerably incorporated into the present market valuation.
WM's shares experienced an uptick following a third-quarter performance that surpassed top and bottom line consensus expectations, coupled with an increase in the projected midpoint for FY24 free cash flow, outpacing market predictions. The company's focus on technology-driven productivity investments continues to enhance favorable industry-level price cost dynamics, potentially leading to significant core margin growth extending into FY25.
Following a robust Q3 earnings release, the company demonstrated considerable pricing and volume growth along with a new peak in Adjusted EBITDA margin at 30.5%. The company has been experiencing benefits from an expanded price-cost spread, the divestment of low-margin volume, enhanced employee retention, and ongoing technology investments. Expectations are set for ongoing growth in the Solid Waste segment, greater contributions from sustainability investments, and the assimilation of Stericycle, which is anticipated to lead to significant advancements in revenue, earnings, and free cash flow.
Here are the latest investment ratings and price targets for $Waste Management (WM.US)$ from 8 analysts:
Note:
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