Wunderlich Securities Maintains Stericycle Rating And PT

This morning, Wunderlich Securities said that it maintains its Hold rating and $63 price target on Stericycle SRCL, noting that it believes SRCL has done an excellent job of consolidating the North American marketplace and developing an effective barrier to entry with the rollout of Steri-Safe. “However, the combination of the law of big numbers and its high market share limits the sustainable growth in NA; international growth has the same cost of entry but with significantly lower margins,” Wunderlich Securities writes. “While 3Q10 results again demonstrated the stability of SRCL's core domestic business, they also show that domestic organic customer growth is slowing, increasing SRCL's dependence on selling value-added services to current customers.” Stericycle currently trades at $71.54.