Analyst Upgrades Sotera Health Shares To Overweight, Cites Strong Revenue Growth Outlook

KeyBanc Capital Markets analyst Matthew Mishan upgraded the shares of Sotera Health Company SHC to Overweight from Sector Weight, with a price target of $24.

Mishan remains particularly confident in the revenue growth outlook of SHC, as the company will benefit from improving medical device volumes and investments to support industry capacity.

The analyst believes positive underlying fundamentals are relatively unchanged and become more of a focus as overhangs continue to resolve.

Sotera Health has maintained underlying HSD-LDD organic revenue growth and can still fund capacity expansions, notes Mishan.

Precisely, it has quantified seven ongoing projects across geographies and sterilization modalities and is working toward long-term ways to diversify its supply of Co-60. 

The company announced that Jon Lyons had joined the company, effective immediately, as Senior Vice President and Chief Financial Officer.

Price Action: SHC shares are trading higher by 3.3% to $18.59 on the last check Monday.