S&P Capital IQ today boosted Waste Management (WM) from Hold to Buy.
Analyst Stewart Scharf raised his earnings estimates and increased his target price by $3 to $40, based on his relative and discounted cash flowÂ models.
Â ”While we still expect modest organic revenue growth in ’12, we see commercial and industrial volume gradually recovering as market conditions improve. We believe commodity recycling prices will rebound later this year. In our view, WM will continue to use strong cash flow for niche acquisitions, waste-to-energy investments, buybacks and dividends. Margins should widen on cost controls. We raise our ’12 operating EPS estimate by $0.05 to $2.30″