Intel stock spikes after report of possible US government stake
Investing.com - Jefferies raised its price target on Sotera Health (NASDAQ:SHC) to $16.00 from $15.50 while maintaining a Buy rating following the company’s second-quarter performance. The stock has shown remarkable momentum, surging nearly 24% in the past week, with current trading at $13.97. According to InvestingPro data, the company maintains a healthy financial profile with a current ratio of 2.47.
The firm noted that Sotera Health delivered a "broad-based beat" across revenue, EBITDA, EPS, margins, and all business segments in what it described as a "long-awaited quarter."
Jefferies highlighted that approximately 100% of revenue outperformance and 84% of EBITDA outperformance was incorporated into the company’s full-year guidance, suggesting durability in both demand improvement and margin execution.
The research firm sees potential upside from incremental margins in the company’s Sterigenics business, though it cautioned that the margin guidance for the Nelson Labs segment "appears full."
Jefferies also noted that OBBB (On-Balance-Sheet Borrowing Base) policies will help cash flow only slightly in the near term by "a few million dollars," with more significant positive impacts expected in 2027 and beyond.
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, compared to the forecasted $0.17, marking a 17.65% surprise. Revenue also exceeded predictions, reaching $294.34 million against the anticipated $275.89 million. Additionally, Barclays (LON:BARC) has raised its price target for Sotera Health from $13.00 to $17.00, while maintaining an Overweight rating. This revision reflects Barclays’ updated valuation assessment of the company. These developments indicate a positive outlook for Sotera Health, as the firm continues to perform above market expectations.
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