Stericycle downgraded to Neutral from Outperform at Baird

Baird downgraded Stericycle to Neutral from Outperform with a price target of $53, down from $65. The shares traded sharply lower after missing Q4 results, guiding 2023 well below expectations and significantly lowering long-term free cash flow views, the analyst tells investors in a research note. With free cash flow targets pushed out two years, the stock’s risk/reward skews less favorably, says the firm. It still sees significant fundamental improvement potential for Stericycle, but says the removal of the expected "hockey stick" margin and free cash flow expansion "diminishes the near-term upside."