Jefferies Cuts Price Target on Stericycle (SRCL) to $112.50; Reiterates Buy

September 7, 2016 7:43 AM EDT
Get Alerts SRCL Hot Sheet
Price: $79.66 --0%

Rating Summary:
    9 Buy, 10 Hold, 3 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Jefferies maintained a Buy rating on Stericycle (NASDAQ: SRCL), and cut the price target to $112.50 (from $125.00), after traveling with management. Based on management's comments, Jefferies estimates the total revenue drag from lower SQ pricing to be $70-73M, spread over a four year period.

Analyst Sean Dodge commented, "We traveled with CEO Charlie Alutto. Concerns around domestic SQ pricing and volatility in non-core businesses remain the biggest overhangs. We peg the total pricing drag to be $70-73M spread over four years—importantly, the '16 impact is already fully reflected in guidance. SRCL continues to take steps to simplify its model and constrain future volatility. An increasing emphasis on margins should drive considerable EBITA expansion over the next 3+ years."

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 $83.49 yesterday.

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