Brokerages Set Waste Management, Inc. (NYSE:WM) Target Price at $248.25

Waste Management is rated a consensus “Moderate Buy” by 28 analysts (15 buy, 10 hold, 3 strong buy) with an average 12‑month price target of $248.25, though several brokers including Stifel, UBS, JPMorgan and National Bankshares have recently trimmed targets or ratings, signaling growing caution. The company’s latest quarter showed EPS of $1.98 versus a $2.01 consensus and revenue of $6.44 billion versus $6.51 billion (revenue +14.9% year‑over‑year), with net margin 10.35% and ROE 33%; brokers project roughly $7.70 in EPS for the year. Waste Management also declared a $0.825 quarterly dividend (annualized $3.30, yield ~1.6%, payout ratio ~52%), and with roughly 80% institutional ownership the stock faces concentrated positioning even as analysts weigh modest operational resilience against recent profitability and guidance concerns.

Analysis

Market consensus on Waste Management is a "Moderate Buy" from 28 analysts (15 buy, 10 hold, 3 strong buy) with an average 12‑month price target of $248.25; several firms have trimmed targets recently (Stifel $252→$236 on Oct 29, National Bankshares $250→$243 on Oct 7, UBS $240→$225 on Oct 31, JPMorgan $277→$255 on Oct 29) and Erste moved from buy to hold, signaling rising analyst caution.

The company reported quarterly EPS of $1.98 versus a $2.01 consensus (‑$0.03) and revenue of $6.44 billion versus $6.51 billion est.; revenue rose 14.9% year‑over‑year, net margin was 10.35% and ROE 33.0%. Analysts project roughly $7.70 EPS for the current year and company guidance for FY2025 was referenced but not quantified in the article, leaving near‑term earnings trajectory subject to revision.

Waste Management declared a $0.825 quarterly dividend (annualized $3.30; yield ~1.6%; payout ratio ~51.97%; ex‑dividend Dec 5), and institutional investors hold ~80.40% of shares while several hedge funds made small position changes recently. High institutional concentration combined with recent analyst downgrades raises the risk of amplified share moves if earnings or guidance disappoint further.

Key Decisions for Investors

• Maintain a cautious/neutral stance near current levels and await clearer FY2025 guidance or successive beat cycles before adding material exposure
• Use the 1.6% dividend and ~52% payout ratio as a modest income anchor if holding for yield, but avoid relying on dividend growth given recent analyst target cuts
• Monitor consensus revisions around the $7.70 EPS forecast and any further target downgrades from major brokers as triggers to trim or hedge positions
• If risk tolerance permits, consider a staged accumulation only on a meaningful pullback below the current average target (~$248) combined with stable margin trends and confirmation of guidance