Sotera Health initiated with a Neutral at Piper Sandler

Piper Sandler initiated coverage of Sotera Health with a Neutral rating and $13 price target. The analyst says the industry positives for Sotera “are numerous,” and the outsourced sterilization business specifically is a category where the company and its main peer should both do well with revenue growth, profitability, and cash generation. However, company-specific factors have Piper taking a “wait-and-see approach.” The firm would like to see Sotera’s balance sheet and cash flow clouds clear, litigation risk lessen considerably, and the overhang of private equity ownership reduced.