Wedbush Downgrades Waste Management (WM) to Underperform; Risk to Downside Remains on Q2 Volume Growth;
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Price: $224.55 +0.15%
Rating Summary:
23 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
23 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush downgraded Waste Management (NYSE: WM) from Neutral to Underperform. PT lowered from $40 to $34.
Wedbush analyst says, "Our downgrade on shares of Waste Management is predicated on the following: (i) Q2 survey results suggest downside risk to volume growth in the quarter and 2H:11 as customer churn trends remain above the industry average of 7.5-8.5%; (ii) challenging year/year comparisons given special waste contributions from the Gulf Coast oil spill in Q2:10; (iii) incremental risk to FY12 consensus estimates as “growth initiatives” continue to struggle to add meaningfully to both revenue and EPS growth. Although the company’s FY11 guidance remains achievable, heightened G&A spending for organizational changes, including spending on consultants, has failed to deliver margin expansion over the last several quarters. Accordingly, we are lowering our rating on WM until both margins and spending on non-core growth initiatives have stabilized."
For more ratings news on Waste Management click here and for the rating history of Waste Management click here.
Shares of Waste Management closed at $37.15 yesterday.
Wedbush analyst says, "Our downgrade on shares of Waste Management is predicated on the following: (i) Q2 survey results suggest downside risk to volume growth in the quarter and 2H:11 as customer churn trends remain above the industry average of 7.5-8.5%; (ii) challenging year/year comparisons given special waste contributions from the Gulf Coast oil spill in Q2:10; (iii) incremental risk to FY12 consensus estimates as “growth initiatives” continue to struggle to add meaningfully to both revenue and EPS growth. Although the company’s FY11 guidance remains achievable, heightened G&A spending for organizational changes, including spending on consultants, has failed to deliver margin expansion over the last several quarters. Accordingly, we are lowering our rating on WM until both margins and spending on non-core growth initiatives have stabilized."
For more ratings news on Waste Management click here and for the rating history of Waste Management click here.
Shares of Waste Management closed at $37.15 yesterday.
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