JPMorgan Upgrades Waste Management (WM) to Overweight, Lifts PT

On Friday, JPMorgan analyst Tami Zakaria upgraded the rating for Waste Management Inc. (NYSE:WM) from Neutral to Overweight, while also raising the price target to $277 from $225.

This upgrade follows Zakaria's initiation of coverage for the waste services sector. The analyst noted skepticism surrounding the company's Stericycle acquisition and the ongoing spending on renewable natural gas projects. The acquisition refers to Waste Management's $7.2 billion purchase of Stericycle in November 2024. Stericycle provides medical waste and secure information destruction services.

However, JPMorgan anticipates that the valuation gap between WM and its competitors will narrow over the longer term. This expected convergence is driven by projected revenue and cost synergies from Stericycle, as well as increasing traction in the company's sustainability projects. The firm also foresees an opportunity to boost Stericycle's core growth profile. Waste Management Inc. (NYSE:WM) provides environmental solutions to residential, commercial, industrial, and municipal customers globally.

While we acknowledge the potential of WM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WM and that has 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.