11:13 AM EDT, 06/25/2025 (MT Newswires) -- Waste Management (WM) underscored its strategy for profitable growth through technology and operational excellence at its 2025 Investor Day, projecting financial targets for fiscal year 2027 that are "above-consensus," Oppenheimer said in a report Wednesday.

"We believe [Waste Management] is demonstrating an impressive ability to drive higher organic growth via disciplined pricing, technology-supported customer value creation, and sustainability investments," Oppenheimer said.

Key to this strategy is the widespread deployment of "smart truck" technology with artificial intelligence analytics across all commercial operations. Management indicated these "technology-enhanced service capabilities" will fuel revenue growth across national accounts, WM Healthcare Solutions cross-selling, and environmental solutions, the report said.

The company also reaffirmed its recycling and renewable energy outlooks, projecting reduced capital spending on sustainability post-2026. It expects 90% of recycling facilities to be automated by 2027 and 65% of landfill gas already captured for beneficial reuse, the report said.

Potential tax law changes could boost Waste Management's free cash flow outlook for fiscal-year 2025 to 2027, and despite ongoing debates around WM Healthcare Solutions' growth and sustainability profitability, the Investor Day provided encouraging updates on both, Oppenheimer said.

Oppenheimer has an outperform rating on Waste Management and raised its price target to $255 from $251.

Price: 230.14, Change: -4.00, Percent Change: -1.71