UPDATE: Wedbush Downgrades Stericycle to Neutral, Reiterates $120 PT Awaiting Better Visibility

In a report published Wednesday, Wedbush analyst Al Kaschalk downgraded the rating on Stericycle SRCL from Outperform to Neutral, but reiterated the $120.00 price target. In the report, Wedbush noted, “We are downgrading shares of Stericycle to NEUTRAL from OUTPERFORM as we believe the intermediate term dynamics while strong, have moderated. We continue to view Stericycle (SRCL) as one of the few growth names in the Environmental Services Sector but downgrading the shares due to: (i) our belief that the mid-to-upper end of internal growth rates will be difficult to exceed over the next several quarters; (ii) expansion into new service offerings continues in earnest but will be lumpy; and (iii) contribution from M&A continues but we do not see a sizeable acquisition in the intermediate term that would alter current expectations and earnings profile. And while we admire the company's strong execution, cash flow generation and growth through M&A, we believe the strengths are priced into the stock at the current premium valuation and recommend investors move to the sideline until there is more visibility that management can deliver growth rates at the mid-to-upper end of its targeted ranges.” Stericycle closed on Tuesday at $113.49.