Stifel resumes Waste Management stock coverage with Buy rating

Investing.com - Stifel resumed coverage of Waste Management (NYSE:WM) with a Buy rating and a price target of $252.00 on Monday. The stock, currently trading at $219.43, has shown strong resilience with a beta of 0.65, reflecting its historically low volatility. InvestingPro data reveals the company maintains a GOOD financial health score of 2.58.

The research firm expects significant free cash flow expansion for Waste Management in 2026 and 2027, projecting increases of 26.6% and 17.4% respectively.

Stifel attributes the anticipated cash flow growth to several factors, including renewable natural gas and recycling projects coming online, normalizing capital intensity, and ongoing cost synergies from the Stericycle acquisition.

While Stifel expresses confidence in Waste Management achieving its targeted Stericycle cost synergies, it remains cautious about potential revenue synergies, describing that aspect as a "show me situation."

The firm projects free cash flow will compound at an upper 5% annual rate after 2027, with a business model shifting toward predictable capital returns to shareholders and growth in free cash flow per share and AEBITDA per share enhanced by share repurchases.

In other recent news, Waste Management has been the focus of several key developments. The company announced a quarterly cash dividend of $0.825 per share, to be paid on September 26, 2025, maintaining its regular payout to shareholders. In addition, Waste Management disclosed a $2.1 million retention award in restricted stock units for Senior Vice President and Chief Sustainability Officer Tara J. Hemmer, set to be granted under its 2023 Stock Incentive Plan. On the analyst front, Barclays initiated coverage of Waste Management with an Overweight rating and a $272 price target, citing a projected 9% adjusted EBITDA per share growth for 2026-2027 as a factor. Conversely, Erste Group downgraded the stock from Buy to Hold, pointing to a recently lowered forecast for revenue growth in 2025. Furthermore, the company announced that Executive Vice President and Chief Financial Officer Devina Rankin will retire after nearly 23 years, transitioning out of her role in November 2025 and continuing as an executive advisor until March 2026. These developments reflect ongoing changes and strategic decisions within Waste Management.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.