JPMorgan Upgrades Waste Management to Strong Buy: What Investors Need to Know for 2025

In a notable shift, JPMorgan has repositioned its stance on Waste Management (NYSE: WM), categorizing it as a strong buy. The bank's analyst Tami Zakaria has upgraded the company's rating from neutral to overweight, hinting at a bright business outlook that has caught the market’s attention.

Zakaria has set a price target of $277 for Waste Management, a considerable rise from the previous target of $225. This new figure suggests an impressive 18.7% potential increase from its recent closing price. According to Zakaria, Waste Management stands out because it operates the most extensive network of landfills across North America, capturing a significant mid-to-high teens market share. This strategic positioning allows the company not only to enjoy high internalization rates but also to retain greater margins throughout its supply chain, which is a solid advantage for any investor.

The future looks bright, with Zakaria projecting that Waste Management's revenues could grow at a robust high single-digit percentage over the next five years. Similarly, the company's EBITDA is expected to rise, potentially ranging from high single-digit to low double-digit percentages during the same period. An additional point of interest is the Stericycle business, which Waste Management acquired last year. This segment is anticipated to enhance its growth trajectory, lifting its core growth from the low single digits to the mid single digits.

Furthermore, technology investments are seen as a catalyst for additional growth. Waste Management has been proactive, shifting around 2,000 routes to automated pickups to improve operational efficiency. Zakaria indicates that there’s even more potential, with around 2,000 more routes yet to be automated.

Following the upgrade, shares of Waste Management experienced a boost of over 1% in Friday’s premarket trading. The stock has already made impressive strides in 2025, with gains exceeding 12%, putting it on a promising path to potentially celebrate its 12th positive year out of the last 13.

As trader sentiment continues to lean favorably towards Waste Management, it might be worthwhile for investors to keep a close watch on this company as it demonstrates resilience and growth prospects.