In a report released today, James Schumm from TD Cowen maintained a Buy rating on Waste Management, with a price target of $265.00.
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James Schumm’s rating is based on a combination of factors influencing Waste Management’s financial outlook. Despite some challenges in the healthcare sector and a slight revenue revision, the company is expected to achieve a significant increase in free cash flow (FCF) by 2026. This anticipated growth is attributed to a reduction in capital expenditures and an increase in sustainability-related EBITDA, which positions Waste Management favorably compared to its peers.
Furthermore, the company is on the verge of exiting its ERP stabilization period, which is expected to transition into a phase of scalability and growth by the second quarter of 2026. This transition, coupled with demographic trends driving higher healthcare spending, supports the company’s long-term revenue growth projections. Although there are concerns about the company’s ability to achieve its 5-6% revenue growth target, the expected improvements in cash flow and operational efficiency underpin the Buy rating.
According to TipRanks, Schumm is an analyst with an average return of -0.4% and a 40.23% success rate.
In another report released today, Barclays also maintained a Buy rating on the stock with a $266.00 price target.