Sotera Health (NASDAQ:SHC), a lab testing service provider, was exonerated by an Illinois court of all claims made against it in a lawsuit involving its Sterigenics unit. Based on arguments backed by scientific evidence, the court ruled out the possibility that the emissions from its sterilization unit caused a woman’s cancer. Shares of the company climbed 17% in the extended trading session on Friday.
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The verdict gave some hope to investors after a spell of skepticism on Wall Street. Shares are down almost 60% since the first verdict came in favor of the woman who had accused Sotera’s Sterigenics unit of releasing harmful emissions from its sterilization plant that most likely caused her breast cancer. The woman was awarded $363 million as compensation, which Sotera was liable to pay.
Sotera faces more than 700 lawsuits accusing its Willowbrook sterilization plant of emitting harmful effusions that could potentially cause cancer and other diseases.
Is Sotera Health a Buy?
Following the lawsuits, Wall Street has become cautious about SHC stock, as clear from a Hold consensus rating based on one Buy, three Holds, and one Sell. The average price target of $7.20 indicates that the price has the potential to rise 19.6% over the next 12 months.
