Waste Management upgraded to Buy on margin pickup at Stifel

Stifel analyst Michael Hoffman upgraded Waste Management to Buy from Hold with a price target of $177, up from $171, post the Q1 results. The firm says the prospect for Waste Management’s margins to swing positive and catch the commodity cycle near a low supports the upgrade. While the company’s guidance assumes a recovery in "all things commodities," a better price/cost relationship warrants a more positive stance on the shares, the analyst tells investors in a research note. Stifel views the economic outlook as "stable at a slower pace of growth" and thinks Waste Management’s margins will meaningfully improve in Q2.