
Sotera Health (SHC) Stock Forecast & Price Target
Sotera Health (SHC) Analyst Ratings
Bulls say
Sotera Health Co is projected to experience significant financial growth, with adjusted EBITDA expected to increase at a compound annual growth rate of 6.7% from $589 million in 2025 to $716 million in 2028, reflecting a margin expansion from 50.8% to 51.7%. The company anticipates adjusted gross profit growth at a 6.4% compound annual rate, rising from $657 million in 2025 to $791 million in 2028, supported by a steady increase in adjusted gross margins. Additionally, Sotera's strategic focus on expanding its higher-margin lab testing services within Nelson Labs, along with a successful cross-selling strategy, further bolsters its positive outlook in an evolving market landscape.
Bears say
Sotera Health has experienced a significant decline in its adjusted EBITDA margin, decreasing from 51.7% in 2021 to 49.9% in 2024, primarily attributed to inflationary pressures, overstaffing, and unfavorable performance in its Nelson Labs segment. The company is facing challenges from the loss of higher-margin COVID-related personal protective equipment testing volumes, which has negatively impacted profitability and is expected to result in a mid-single-digit decline in sales for Nelson Labs in 2025. Additionally, despite achieving nearly 9.0% organic revenue growth from 2021 to 2022, recent performance has been hampered by supply chain issues such as inventory de-stocking, leading to a negative outlook for the stock.
This aggregate rating is based on analysts' research of Sotera Health and is not a guaranteed prediction by Public.com or investment advice.
Sotera Health (SHC) Analyst Forecast & Price Prediction
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