Wells Fargo Initiates Coverage on Waste Management (WM) with Overweight Rating

Core Insights - Waste Management, Inc. (NYSE:WM) is recognized as one of the 15 Best Long Term Stocks to Buy according to Reddit [1] - Wells Fargo initiated coverage on Waste Management with an Overweight rating and a price target of $238, projecting approximately 20% growth in unit profitability and about 40% improvement in free cash conversion over the next two years [2] - In Q3, Waste Management reported $6.4 billion in revenue, a 15% increase year-over-year, although operating income decreased by 12% to $989 million due to noncash expenses [3] Business Strategy - The company is advancing its landfill gas-to-energy strategy, which captures methane from landfills and converts it into renewable natural gas, providing a carbon-neutral alternative to fossil fuels [4] - Acquisitions are a key growth driver, with Waste Management spending $7.2 billion to acquire Stericycle, enhancing its position in the healthcare waste sector and enabling operational efficiencies [5] - Waste Management's core operations encompass the entire waste management process, including collection, transportation, recycling, landfilling, and treatment [6]