Steris, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Patrick Wood from Morgan Stanley maintained a Buy rating on the stock and has a $295.00 price target.
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Patrick Wood has given his Buy rating due to a combination of factors that highlight Steris’ strong positioning and growth potential. Steris’ unique global presence in the healthcare sector allows it to capitalize on utilization trends, with notable procedure growth in North America exceeding historical averages. This growth is complemented by opportunities in the U.S. healthcare market, particularly in outpatient build-outs, which are becoming increasingly prevalent.
Additionally, Steris is poised to expand its presence in Europe by adapting its product portfolio to meet local market needs. The company is also experiencing solid growth in sterilization volumes, which are linked to increased procedural activity. While the FDA’s Master File Pilot may not currently be a significant financial driver, it holds potential for future contributions. Furthermore, Steris’ ethylene oxide facilities are well-positioned, and the company is benefiting from robust healthcare order growth driven by the shift from inpatient to outpatient care settings. These factors collectively support the positive outlook and Buy rating for Steris.
In another report released on August 28, KeyBanc also reiterated a Buy rating on the stock with a $288.00 price target.
Based on the recent corporate insider activity of 47 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of STE in relation to earlier this year.