UPDATE: Jefferies Initiates Coverage on Stericycle with Buy Rating, $127 PT on International Expansion

In a report published Tuesday, Jefferies analyst Sean Dodge initiated coverage on Stericycle

with a Buy rating and $127.00 price target. In the report, Dodge noted, “Stericycle's international expansion—still in its early stages—triples the size of its addressable med-waste/compliance opportunity. The first steps into foreign markets are accompanied by margin pressure, but significant benefits accrue to both revenue and margin over the LT as regions are backfilled and premium services are up-sold. Including acquisitions, we see earnings growing 18% annually for at least the next several years.” Stericycle closed on Monday at $109.20.