JPMorgan gives waste management stock a street-high price target

In a significant development for the waste management industry, JPMorgan Chase upgraded Waste Management Inc. from neutral to overweight on May 23, 2025. This upgrade comes as analysts see a promising outlook for the company, with a price target set at $277, reflecting an 18.7% potential upside from the last closing price. Analyst Tami Zakaria emphasized that Waste Management operates the largest network of landfills in North America, securing a mid-to-high teen market share. This advantageous position allows them a high internalization rate, enabling the company to retain more margins within its supply chain. JPMorgan expects Waste Management to experience substantial growth over the next five years, with revenues projected to increase at a high single-digit percentage rate. Furthermore, earnings before interest, taxes, depreciation, and amortization (EBITDA) should experience a rise either in the high single digits or low double digits. In an encouraging note, Zakaria pointed out that the Stericycle business, which Waste Management acquired last year, is expected to witness its core growth profile improve from low single digits to mid single digits. Analyst Tami Zakaria highlighted the role of technology in driving Waste Management's future growth. By investing in technology, the company has enhanced route density. As a result, approximately 2,000 of its routes have transitioned to automated pickups, with opportunities for many more, around 2,000 additional routes, to follow suit. This move indicates a strategic direction focused on innovation and efficiency. Following the upgrade announcement, Waste Management shares saw an immediate reaction, gaining more than 1% in premarket trading on Friday. This reflects positive sentiment from the market after the analysis by JPMorgan, which aligns with the majority of other analysts who also carry a buy or strong buy-equivalent rating for the stock. Further alignment with analysts suggests growing confidence in Waste Management's ability to outperform its peers in future valuations.