Market Overview

Wedbush Securities Reiterates Neutral Rating, $34 PT on Waste Management on 4Q12 Shortfall

Related WM
Benzinga's Top Upgrades, Downgrades For March 1, 2017
Keep an Eye on These 12 Stocks for February 16, 2017
Meridian Waste: A Better Buy Than Waste Management And Waste Connections? (Seeking Alpha)

In a report published Friday, Wedbush Securities reiterated its Neutral rating and $34.00 price target on Waste Management (NYSE: WM).

Wedbush Securities noted, “Reiterate NEUTRAL as headwinds remain, despite positive 2013 volume cadence. We are maintaining our neutral stance on shares of Waste Management (WM) following the company's Q4:12 $0.57 adjusted EPS, which came in below our above-consensus estimate by $0.06. While net revenue was generally in line with our estimate, the company's margin profile continues to be negatively impacted by (i) lower price realization on sale of recycled commodities; (ii) challenging pricing environment netting sub-1% yield; and (iii) volume mix. Despite commentary to suggest cost-reduction efforts are on pace to drive over $1.1 billion in FCF in 2013, our expectation for improved margins is likely pushed out. And with investors lifting the shares on anticipation of a potential change in corporate tax structure, we believe the risk/reward profile is no better than neutral at the current stock price. Accordingly, we are reaffirming our NEUTRAL rating on WM.”

Waste Management closed on Thursday at $37.14.

Latest Ratings for WM

Mar 2017BarclaysDowngradesOverweightEqual-Weight
Nov 2016BarclaysUpgradesEqual-WeightOverweight
Nov 2016Goldman SachsInitiates Coverage OnSell

View More Analyst Ratings for WM
View the Latest Analyst Ratings

Posted-In: Wedbush SecuritiesAnalyst Color Reiteration Analyst Ratings


Related Articles (WM)

View Comments and Join the Discussion!