SRCL - Stericycle named new top idea at RBC; sees 45% upside

RBC Capital Markets has named the medical and hazardous waste disposal company Stericycle (SRCL +0.2%) a new top idea due to organic revenue growth and margin expansion. The firm has a buy rating and an $82 price target (~45% upside based on Tuesday's close). Analyst Sean Dodge said that near-term catalysts include quarterly execution toward its fiscal year targets, rebounding healthcare volumes, workers returning to offices, and recovering cruise activity. He added Stericycle (SRCL +0.7%) is targeting 3%-5% organic growth for both 2022 and the long term, while the restart of its M&A program should bolster this. Dodge noted that the company is in the midst of an enterprise resource planning process which carries risks, though they are waning. Seeking Alpha's Quant Rating views Stericycle (SRCL +0.7%) as a hold.

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Stericycle named new top idea at RBC; sees 45% upside