UPDATE: Goldman Sachs Initiates Stericycle at Buy on Favorable Mix Shift, M&A Catalysts

Goldman Sachs initiated Stericycle

with a Buy rating and a $115.00 price target. Goldman Sachs analyst Isaac Ro commented, "Our thesis is based on: (1) underappreciated durability of the SRCL model, (2) favorable mix shift and (3) catalysts via M&A and margin upside. How we are different: Our proprietary analysis of market fragmentation in key states covering roughly 30% of the US population suggests ample fragmentation remains. Additionally, we compare SRCL to other unique roll-up stories across a variety of industries using CROCI. This leads us to model EPS above consensus and apply a premium valuation multiple. Stericycle closed at $98.65 on Tuesday.