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Investing.com - Erste Group downgraded Waste Management (NYSE:WM) stock rating from Buy to Hold on Thursday. The company, currently valued at $87.7 billion, has shown strong historical performance with a 6.3% total return over the past year, according to InvestingPro data.
The research firm cited Waste Management’s recently lowered forecast for revenue growth in 2025 as a key factor behind the downgrade decision.
According to Erste Group analyst Hans Engel, the company expects waste volume growth to reach only between 0.25% and 0.75% this year, contributing to the reduced revenue outlook.
The downgrade reflects expectations that Waste Management’s operating income will increase more slowly in 2025 compared to the previous year, despite the company’s continued growth through both organic means and acquisitions.
Erste Group noted that Waste Management’s weaker growth prospects have resulted in a lower price-to-earnings ratio for the stock relative to its sector.
In other recent news, Waste Management reported its second-quarter 2025 earnings, surpassing Wall Street expectations with an earnings per share of $1.92, slightly above the forecast of $1.90. The company’s revenue reached $6.43 billion, exceeding the anticipated $6.37 billion. Scotiabank responded by raising its price target for Waste Management to $275, maintaining a Sector Outperform rating. Additionally, Waste Management declared a quarterly dividend of $0.825 per share, payable on September 26, 2025, to stockholders of record as of September 12, 2025.
The company also announced a retention award for Tara J. Hemmer, Senior Vice President and Chief Sustainability Officer, valued at $2.1 million in restricted stock units. In personnel changes, Executive Vice President and Chief Financial Officer Devina Rankin plans to retire after nearly 23 years with the company, transitioning out of her role in November 2025. She will remain as an executive advisor through March 2026. These developments reflect Waste Management’s ongoing strategic initiatives and leadership transitions.
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