Waste Management(US:WM) Financial Modeling Prep·2026-01-09 22:07Core Viewpoint - UBS upgraded Waste Management from Neutral to Buy and raised the price target to $260 from $225, anticipating a positive impact from the resumption of share repurchases [1] Group 1: Shareholder Returns - The resumption of share repurchases, which had been suspended since Q1 2024, is expected to drive a 2.5-times increase in capital returned to shareholders [1] - UBS noted that following previous investment cycles, Waste Management's relative valuation had expanded by as much as 20% [2] Group 2: Financial Performance - Waste Management successfully integrated Stericycle into its WM Healthcare Solutions business and reduced leverage from 3.6x to 3.0x in Q4 2024 [2] - These actions are projected to set the stage for over 30% year-over-year growth in free cash flow in 2026 [2] Group 3: Market Trends - UBS expects a shift in investor preference towards companies that emphasize capital returns rather than continued investment in municipal solid waste, which may support a re-rating of the stock [3]