Credit Suisse Believes Top Line Growth Matters More Than Margins for Stericycle

In a report published Monday, Credit Suisse analyst Hamzah Mazari reiterated an Outperform rating and $140.00 price target on

. In the report, Credit Suisse noted, “We believe that operating leverage given lack of infrastructure pre-PSC deal should lead to much higher than expected earnings power over the next 12-16 months. Recall that SRCL can run StrongPak through PSC infrastructure and cut out third party treatment/disposal costs (i.e. had 1 Part B facility vs 13 post deal) in addition to better optimizing route density/logistics. Our sense is that 12 cents of 2015 full year EPS accretion is low based on our channel checks and past environmental deals.” Stericycle closed on Thursday at $119.23.