Stericycle Receives “Buy” Rating from Stifel Nicolaus (SRCL)
Stericycle (NASDAQ:SRCL)‘s stock had its “buy” rating reiterated by analysts at Stifel Nicolaus in a research report issued to clients and investors on Thursday, StockRatingsNetwork.com reports. They currently have a $138.00 price objective on the stock, up from their previous price objective of $123.00. Stifel Nicolaus’ price objective suggests a potential upside of 14.17% from the company’s current price.
The analysts wrote, “Although revenue and EPS (normalizing for low tax rate) were lower than expected, and organic growth trended toward the low-end of the expected range, we believe the outlook for the company remains unchanged and would be buyers on the expected weakness. We view the organic growth slowdown as part of the normal business ebbs and flows (partially due to tougher comps in 2013 from Hazardous Waste strength in 2012) and do not believe it signals a change in SRCL’s prospects. We view the solid acquisition quarter (17 acquisitions, mostly in the RMW and Compliance areas) as evidence that there are ample M&A targets available, and these acquisitions should fuel future organic growth as SRCL cross-sells and up-sells the acquisitions’ clients. We are raising our target price from $123 to $138 as we roll the target price multiple onto our 2015 EPS estimates – our $138 target price represents a 29.3x EPS multiple on our $4.70 2015 EPS estimate (and 16.8x our 2015 EBITDA estimate). This multiple represents that average of the forward year multiple SRCL shares have traded at since the end of 2001, and is consistent with recent forward P/E and EBITDA multiples.”
SRCL has been the subject of a number of other recent research reports. Analysts at Raymond James downgraded shares of Stericycle from an “outperform” rating to a “market perform” rating in a research note to investors on Thursday. Separately, analysts at Wunderlich raised their price target on shares of Stericycle from $123.00 to $125.00 in a research note to investors on Sunday, September 22nd. They now have a “buy” rating on the stock. Finally, analysts at Wedbush downgraded shares of Stericycle from an “outperform” rating to a “neutral” rating in a research note to investors on Wednesday, August 28th. They now have a $120.00 price target on the stock. Four equities research analysts have rated the stock with a hold rating and six have given a buy rating to the stock. The stock presently has an average rating of “Buy” and a consensus target price of $121.55.
Shares of Stericycle (NASDAQ:SRCL) traded down 1.56% on Thursday, hitting $118.99. The stock had a trading volume of 216,102 shares. Stericycle has a one year low of $88.76 and a one year high of $119.59. The stock’s 50-day moving average is $115.1 and its 200-day moving average is $109.7. The company has a market cap of $10.220 billion and a P/E ratio of 36.74.
Stericycle (NASDAQ:SRCL) last released its earnings data on Wednesday, October 23rd. The company reported $0.96 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.94 by $0.02. The company had revenue of $534.60 million for the quarter, compared to the consensus estimate of $542.38 million. During the same quarter in the prior year, the company posted $0.84 earnings per share. The company’s quarterly revenue was up 11.3% on a year-over-year basis. Analysts expect that Stericycle will post $3.71 EPS for the current fiscal year.
Stericycle, Inc, is in the business of managing regulated waste and providing an array of related and complementary services.
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