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Investing.com - JPMorgan has raised its price target on Waste Management (NYSE:WM) stock to $265.00 from $255.00 while maintaining an Overweight rating. The new target represents a 22% upside from the current price of $217.87, aligning with the broader analyst consensus that shows a potential 15% upside according to InvestingPro data.
The firm cited Waste Management’s ownership of North America’s largest landfill network as a key competitive advantage, noting the company holds a mid-to-high teens percentage market share that enables higher internalization rates and better margin retention. This market dominance has helped WM maintain a gross profit margin of nearly 40% over the last twelve months.
JPMorgan expects Waste Management to achieve approximately 12% return on invested capital in 2025, reflecting what the firm describes as prudent capital use and scale benefits in an industry where strict regulations create high barriers to entry. This projection aligns with WM’s current return on invested capital of 12%, as reported in InvestingPro’s financial health assessment, which rates the company as "GOOD" with a score of 2.64 out of 5.
The research note highlighted Waste Management’s $3 billion capital expenditure plan for recycling and renewable natural gas projects between 2022-2026, which is expected to generate approximately $800 million in annual operating EBITDA by 2027. The company’s current EBITDA stands at $7.28 billion, with a free cash flow yield of 3%.
JPMorgan also referenced Waste Management’s November 2024 acquisition of Stericycle, which increased cost synergy expectations to $250 million and integrated medical waste into the company’s solid waste offerings, with potential to boost topline growth to mid-single digits and EBITDA margins to mid-20% over the medium to long term. WM has already demonstrated strong revenue growth of 15.9% in the last twelve months and has maintained dividend payments for 28 consecutive years, with 22 years of consecutive increases. Investors seeking deeper insights into WM’s acquisition strategy and financial outlook can access the comprehensive Pro Research Report available on InvestingPro, which covers this and over 1,400 US equities with expert analysis.
In other recent news, Waste Management has been the focus of several notable developments. The company declared a quarterly cash dividend of $0.825 per share, payable on December 19, 2025, to shareholders of record as of December 5, 2025. Goldman Sachs initiated coverage on Waste Management with a Buy rating and a price target of $256, anticipating a 7.7% EBITDA compound annual growth rate over 2025-2027. Stifel also reiterated its Buy rating, expecting significant free cash flow growth by 2026 as sustainability projects reduce capital expenditures. Bernstein initiated coverage with an Outperform rating and a $255 price target, highlighting growth in renewables and a potential increase in free cash flow. Additionally, Waste Management announced a temporary suspension of certain transactions under its Retirement Savings Plan due to a change in recordkeepers, starting December 24, 2025, and ending in January 2026. These recent developments reflect a period of strategic financial maneuvers and analyst interest in Waste Management.
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