UPDATE: Credit Suisse Initiates Coverage on Stericycle at Outperform, Establishes $140.00 PT

In a report published Monday, Credit Suisse analyst Hamzah Mazari initiated coverage on Stericycle, Inc.

at Outperform, establishing a $140.00 price target. According to the report, the $140.00 price target is based on the analyst's normalized EBIDTA estimate of ~$920mm at ~16.5x multiple discounted back. “Barrier to entry in the medical waste business is not just having a disposal network advantage but also high route density similar to the municipal solid waste business,” the report noted. “We believe having captive US market share in a stable business (over 95% of revenues are under long term contracts with automatic renewal clauses) with significant global and domestic secular drivers insulates Stericycle from economic cycles.” Some highlights from the report included: -Mix and Cross Selling is Underappreciated. -International Markets Remain Upside. SRCL closed Friday at 115.42.