Wedbush Downgrades Waste Management (WM) to Neutral

October 13, 2016 7:18 AM EDT
Get Alerts WM Hot Sheet
Price: $69.79 --0%

Rating Summary:
    8 Buy, 9 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Wedbush downgraded Waste Management (NYSE: WM) from Outperform to Neutral with a price target of $68.00 (from $73.00).

Analyst Al Kaschalk commented, "With shares trading at a 17% premium to the S&P 500 P/E multiple and 30% above their 3-year average, we are downgrading shares of Waste Management (WM) to NEUTRAL from OUTPERFORM. We believe management is making the right operational decisions related to customer retention and returning recycling operations to sustained profitability. However we are increasingly concerned about peaking industry volumes, WM’s P/E-to-EPS growth rate and annual EBITDA margin normalizing in the range of 28-29%. Coupled with marginal investor waning interest in dividend income stocks, we expect shares of WM to be range bound given pressure from profit-taking and investor rotation. Given late in the cycle and our industry view that volumes do not accelerate, we downgrade to NEUTRAL on a more neutral risk/reward profile."

For an analyst ratings summary and ratings history on Waste Management click here. For more ratings news on Waste Management click here.

Shares of Waste Management closed at $62.82 yesterday.

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