WM price target raised to $220 from $204 at RBC Capital

RBC Capital raised the firm’s price target on WM (WM) to $220 from $204 and keeps a Sector Perform rating on the shares after its Q3 earnings beat. The company reported strong pricing and volume growth as well as another record Adjusted EBITDA margin of 30.5%, with WM benefiting from increased price-cost spread, shedding of low-margin volume, improved employee retention, and technology investments, the analyst tells investors in a research note. WM also anticipates continued growth in its Solid Waste business, increased contribution from sustainability investments, and the integration of Stericycle to collectively result in a “step change” in revenue, earnings, and free cash flow, the firm added.