
Sotera Health (SHC) Stock Forecast & Price Target
Sotera Health (SHC) Analyst Ratings
Bulls say
Sotera Health is projected to achieve adjusted EBITDA growth at a compound annual rate of 5%-8% from 2024 through 2027, indicating a potential margin expansion of 50-150 basis points by 2027. The company anticipates generating nearly 100 basis points of adjusted EBITDA margin improvement in 2024, driven by a favorable mix shift toward higher-margin lab testing services within the Nelson Labs segment. Additionally, revenue from pharmaceutical sales has increased significantly since Sotera’s acquisition of Nelson Labs, now accounting for approximately one-third of total sales, which signals encouraging momentum in cross-selling initiatives and overall customer satisfaction.
Bears say
The analysis of Sotera Health reveals several fundamental reasons contributing to a negative outlook on the company's stock. Notably, adjusted EBITDA margins have decreased by approximately 180 basis points from 2021 to 2024, primarily due to inflation, overstaffing, and a shift in revenue mix within the Nelson Labs segment, particularly following the decline in higher-margin COVID-related testing volumes. Additionally, despite historical organic revenue growth averaging nearly 9.0%, the company has faced significant pressure on its top line from customer supply chain challenges, contributing to expectations of underperformance in specific segments, particularly advisory services, which is anticipated to further impact overall sales in 2025.
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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