UPDATE: RBC Capital Starts Sotera Health (SHC) at Outperform

(updating comment)

RBC Capital analyst Sean Dodge initiates coverage on Sotera Health (NASDAQ: SHC) with a Outperform rating and a price target of $31.00.

The analyst comments "Sotera is a global provider of outsourced sterilization and lab testing services to the pharma/med-device markets. The integral (i.e. sticky) role it plays in its clients' manufacturing processes and long record of operational excellence have driven remarkably consistent revenue/ EBITDA growth (10% and 13% CAGRs, respectively) over the last 15 years. We expect this will continue at a similar organic pace for the next 3+ years based on the forward visibility SHC has into new client projects/volume growth, significant cross-selling opportunity, and favorable macro trends. Shares currently trade at 19.3x our '21E EBITDA, a considerable discount to leading HC/pharma services peers."

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

Shares of Sotera Health closed at $25.47 yesterday.

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