Waste Management stock price target raised to $275 by Scotiabank

Investing.com - Scotiabank (TSX:BNS) raised its price target on Waste Management (NYSE:WM) to $275.00 from $265.00 on Thursday, while maintaining a Sector Outperform rating on the waste disposal company. The new target represents potential upside from the current stock price of $232.51, though according to InvestingPro analysis, the stock appears to be trading above its Fair Value.

The price target increase follows Waste Management’s better-than-expected second-quarter results, which exceeded forecasts despite headwinds from commodity prices. The company’s performance was driven by strong special waste volumes, tuck-in acquisitions, positive pricing trends, sustainability initiatives, and cost efficiencies. With a robust revenue growth of 10.77% and an EBITDA of $6.73 billion in the last twelve months, the company maintains its position as a prominent player in the Commercial Services & Supplies industry.

Scotiabank noted that Waste Management has improved its 2025 margin and free cash flow outlook, supported by a more favorable business mix and bonus depreciation benefits. The company has trimmed its revenue guidance due to commodity price pressures.

The firm highlighted Waste Management’s ongoing margin expansion and growth driven by its Stericycle (NASDAQ:SRCL) acquisition, with potential upside risk to synergies. Scotiabank also pointed to the company’s relatively attractive valuation at 15.6x EV/EBITDA and 3.0% free cash flow yield on 2025 estimates, which compares favorably to industry peers.

Waste Management continues to benefit from incremental cost efficiencies and synergies from its Stericycle acquisition, according to the Scotiabank analysis.

In other recent news, Waste Management Inc. reported its second-quarter 2025 earnings, which exceeded Wall Street expectations. The company announced an earnings per share (EPS) of $1.92, slightly surpassing the forecasted $1.90. Revenue for the quarter reached $6.43 billion, also beating the anticipated $6.37 billion. These results indicate a positive performance for Waste Management in the recent period. While the earnings and revenue figures are notable, there were no updates regarding mergers or acquisitions. Analyst firms have not reported any upgrades or downgrades for Waste Management at this time. These developments highlight the company’s current financial standing and investor sentiment.

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