Steris: Strong Growth and Strategic Positioning Justify Buy Rating Despite Revenue Miss

David Turkaly, an analyst from JMP Securities, reiterated the Buy rating on Steris (STE – Research Report). The associated price target remains the same with $265.00.

David Turkaly has given his Buy rating due to a combination of factors, including Steris’s strong performance in key segments and its strategic positioning in the market. Despite a slight miss in quarterly revenue compared to consensus estimates, the company demonstrated solid growth in its Healthcare and AST segments, with notable increases in service revenue and consumables.
Moreover, the adjusted earnings per share were in line with expectations, reflecting a robust financial performance. Although the company adjusted its guidance for fiscal year 2025 due to unfavorable foreign exchange rates, the overall growth outlook remains positive. Turkaly’s price target is based on a premium valuation relative to peers, highlighting Steris’s unique market position and growth potential.

Turkaly covers the Healthcare sector, focusing on stocks such as Lantheus, AxoGen, and SI-Bone. According to TipRanks, Turkaly has an average return of -4.6% and a 37.10% success rate on recommended stocks.