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Investing.com - Barclays (LON:BARC) has raised its price target on Sotera Health (NASDAQ:SHC) to $17.00 from $13.00 while maintaining an Overweight rating on the stock. Currently trading at $13.93, InvestingPro analysis indicates the stock is slightly overvalued at current levels, despite showing strong financial health metrics with a "GOOD" overall rating.
The price target increase represents a significant upward revision of $4.00 per share, reflecting Barclays’ updated valuation assessment of the medical sterilization and lab testing company.
Barclays believes Sotera Health’s core business remains undervalued, though it notes that ongoing litigation concerns continue to limit investor sentiment toward the stock.
The revised price target implies an 11x EV/EBITDA multiple based on Barclays’ 2026 EBITDA estimate of $618 million, compared to the previous valuation of 9.2x on a $610 million EBITDA estimate.
Despite the litigation overhang that Barclays identifies as capping investor willingness to pay premium multiples, the firm maintains its Overweight position on Sotera Health shares.
In other recent news, Sotera Health reported robust financial results for the second quarter of 2025, surpassing analyst expectations. The company achieved an adjusted earnings per share (EPS) of $0.20, which was higher than the forecasted $0.17, representing a 17.65% surprise. Additionally, Sotera Health’s revenue reached $294.34 million, exceeding the predicted $275.89 million. These results highlight the company’s strong performance in the recent quarter. The positive financial outcomes contributed to a surge in investor sentiment. Analysts had anticipated lower figures, making the actual results noteworthy for investors. This development is part of a series of recent updates from the company.
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