Truist starts Stericycle at Hold on ‘relatively expensive’ valuation

Truist analyst Tobey Sommer initiated coverage of Stericycle with a Hold rating and $45 price target. Stericycle is the leading domestic medical waste and document destruction provider, the analyst tells investors in a research note. The firm views the company’s prospects for improved operating performance and margin expansion as "intriguing," but says they offset by a "relatively expensive valuation and significant IT a migration execution risk." It could become more constructive on the stock if the Stericycle begins to deliver more tangible results from management’s multi-year restructuring program.