Morgan Stanley Downgrades Waste Management to “Underweight”; Says Stock is Overvalued, Given Weak Fundamentals (WM)
Trash collection specialist Waste Management, Inc. (WM) on Wednesday caught a big downgrade from analysts at Morgan Stanley.
The firm said it cut its rating on WM from “Equal-weight” to “Underweight” with a $30 price target, suggesting a 9% downside to the stock’s Tuesday closing price of $33.07. Morgan Stanley noted that despite poor fundamentals, WM’s stock performance has been strong.
Waste Management shares were mostly flat in premarket trading Wednesday.
The Bottom Line
We have been recommending shares of Waste Management (WM) since Feb.22, 2012, when the stock was trading at $35.10. The company has a 4.29% dividend yield, based on last night’s closing stock price of $33.07.
Waste Management, Inc. (WM) is a “Recommended” dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.
FREE Dividend Stock Newsletter
Get the Dividend.com email newsletter to receive:
- A free copy of our acclaimed report, 5 Rules of Winning Dividend Stock Investing
- Free daily investing tips and picks from Dividend.com CEO Paul Rubillo
- Tons of great market analysis and recommendations