UPDATE: Credit Suisse Initiates Coverage on Stericycle on Positive Solid Waste Business

In a report published Monday, Credit Suisse analyst Hamzah Mazari initiated coverage on Stericycle, Inc. (NASDAQ: SRCL) at Outperform, establishing a $140.00 price target.

According to the report, the $140.00 price target is based on the analyst's normalized EBIDTA estimate of ~$920mm at ~16.5x multiple discounted back.

“Barrier to entry in the medical waste business is not just having a disposal network advantage but also high route density similar to the municipal solid waste business,” the report noted. “We believe having captive US market share in a stable business (over 95% of revenues are under long term contracts with automatic renewal clauses) with significant global and domestic secular drivers insulates Stericycle from economic cycles.”

Some highlights from the report included: -Mix and Cross Selling is Under-appreciated. -International Markets Remain on the Upside.

SRCL closed Friday at 115.42.