Jefferies Reiterates Buy After Meeting with Stericycle Inc (SRCL) Management

Jefferies maintained a Buy rating and $140.00 price target on Stericycle Inc (NASDAQ: SRCL) after meeting with management. With growth in the core remaining healthy-- Brazil being the sole exception--the recent inconsistency in consolidated results have come from weakness in a couple of SRCL's ancillary businesses. Management believes it has removed enough from guidance in the event none of the three situations improve.

Analyst Sean Dodge commented, "We met with CEO Charlie Alutto. Growth in the core remains healthy, but has been obscured by weakness in two of SRCL's ancillary businesses. Guidance assumes none of the situations improve, and below, we attempt to size the remaining exposures. Shares are now down 37% from Oct '15 highs and 21% YTD (valuation now 17.4x '17 EPS versus mid/high-20s historical average), which we believe overly discounts the risk that execution in these ancillaries remains choppy."

For an analyst ratings summary and ratings history on Stericycle click here. For more ratings news on Stericycle click here.

Shares of Stericycle closed at $95.47 yesterday.

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