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Research Alert: CFRA Reiterates Buy Opinion In Shares Of Waste Management Inc.
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Research Alert: CFRA Reiterates Buy Opinion In Shares Of Waste Management Inc.
Oct 27, 2025 11:49 PM

02:40 AM EDT, 10/28/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We retain our 12-month target of $250 following WM's Q3 results, valuing shares at 29.3x our 2026 EPS view of $8.52 (down from $8.60; 2025 EPS adjusted to $7.47 from $7.72). WM reported mixed Q3 results as revenue fell short of expectations due to headwinds in its Recycling, where commodity prices declined ~35% Y/Y and sales dropped $60M. Healthcare Solutions also underperformed as WM delayed pricing adjustments to prioritize customer relationships. Revenues are now expected to be ~$25.28B, near the low end of prior guidance. However, WM's core Collection and Disposal business (83% of Q3 sales) was a bright spot, achieving a record operating EBITDA margin of 38.4% and driving 10 bps Y/Y expansion in overall company EBITDA margin to 30.6%. Strong margin performance reflects tech investments, strategic asset utilization, and disciplined pricing, with core pricing remaining at 6%. WM raised its operating EBITDA margin guidance to 29.6%-30.2% from 29.6%-29.9%, demonstrating continued pricing power in the industry.

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