UBS Group Issues Pessimistic Forecast for STERIS (NYSE:STE) Stock Price

Key Points

• UBS Group lowered STERIS’s price target to $270 from $275 but maintained a “buy” rating, implying approximately 13.6% upside. Analysts overall remain moderately bullish, with a consensus target of $277.25.
• STERIS reported quarterly EPS of $2.59, beating the $2.49 consensus, while revenue increased 7.3% year over year. The company maintained fiscal 2027 adjusted EPS guidance of $11.00–$11.30.
• STERIS shares rose 2.6% to $237.70, although insiders sold 7,328 shares worth about $1.55 million in the past quarter. Institutional investors continue to hold a substantial 94.69% stake in the company.

STERIS (NYSE:STE - Get Free Report) had its price target dropped by stock analysts at UBS Group from $275.00 to $270.00 in a research note issued on Friday,Benzinga reports. The brokerage currently has a "buy" rating on the medical equipment provider's stock. UBS Group's price target would indicate a potential upside of 13.59% from the company's current price.

Several other equities analysts have also weighed in on STE. Piper Sandler reaffirmed an "overweight" rating and issued a $275.00 price objective (up from $270.00) on shares of STERIS in a research note on Friday. KeyCorp dropped their target price on shares of STERIS from $291.00 to $269.00 and set an "overweight" rating for the company in a research report on Wednesday, May 13th. Weiss Ratings lowered shares of STERIS from a "hold (c+)" rating to a "hold (c)" rating in a report on Wednesday, May 27th. Finally, Wall Street Zen cut shares of STERIS from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. Four analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $277.25.

STERIS Trading Up 2.6%

Shares of STE stock traded up $5.92 on Friday, reaching $237.70. 804,021 shares of the stock were exchanged, compared to its average volume of 803,791. The company has a quick ratio of 1.54, a current ratio of 2.09 and a debt-to-equity ratio of 0.25. The stock has a market cap of $23.17 billion, a P/E ratio of 29.06 and a beta of 0.91. The firm has a 50 day moving average of $214.35 and a two-hundred day moving average of $225.40. STERIS has a 1-year low of $195.14 and a 1-year high of $269.44.

STERIS (NYSE:STE - Get Free Report) last issued its earnings results on Wednesday, August 5th. The medical equipment provider reported $2.59 earnings per share for the quarter, beating analysts' consensus estimates of $2.49 by $0.10. STERIS had a return on equity of 14.39% and a net margin of 13.34%.During the same period in the previous year, the company earned $2.34 EPS. The firm's revenue was up 7.3% compared to the same quarter last year. STERIS has set its FY 2027 guidance at 11.000-11.300 EPS. On average, research analysts anticipate that STERIS will post 11.17 EPS for the current year.

Insiders Place Their Bets

In other news, VP John Adam Zangerle sold 1,419 shares of the company's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $209.28, for a total value of $296,968.32. Following the completion of the sale, the vice president owned 35,259 shares of the company's stock, valued at $7,379,003.52. This represents a 3.87% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Daniel A. Carestio sold 3,054 shares of the stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $214.64, for a total value of $655,510.56. Following the completion of the sale, the chief executive officer owned 65,021 shares of the company's stock, valued at approximately $13,956,107.44. This trade represents a 4.49% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 7,328 shares of company stock worth $1,554,051 over the last quarter. 1.12% of the stock is owned by corporate insiders.

Institutional Trading of STERIS

A number of hedge funds have recently made changes to their positions in STE. Bailard Inc. increased its holdings in STERIS by 3.5% in the 4th quarter. Bailard Inc. now owns 1,118 shares of the medical equipment provider's stock valued at $283,000 after buying an additional 38 shares during the period. Geneos Wealth Management Inc. lifted its holdings in shares of STERIS by 34.9% during the 2nd quarter. Geneos Wealth Management Inc. now owns 174 shares of the medical equipment provider's stock worth $42,000 after acquiring an additional 45 shares during the period. Ascent Group LLC boosted its position in shares of STERIS by 4.9% during the 4th quarter. Ascent Group LLC now owns 1,009 shares of the medical equipment provider's stock worth $256,000 after acquiring an additional 47 shares in the last quarter. Clear Harbor Asset Management LLC boosted its position in shares of STERIS by 3.8% during the 4th quarter. Clear Harbor Asset Management LLC now owns 1,350 shares of the medical equipment provider's stock worth $342,000 after acquiring an additional 50 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. increased its stake in STERIS by 2.4% in the third quarter. Northwestern Mutual Wealth Management Co. now owns 2,261 shares of the medical equipment provider's stock valued at $560,000 after acquiring an additional 53 shares during the last quarter. Hedge funds and other institutional investors own 94.69% of the company's stock.

Trending Headlines about STERIS

Here are the key news stories impacting STERIS this week:

• Positive Sentiment: Piper Sandler raised its price target to $275 from $270 while reaffirming an “overweight” rating. The revised target implies roughly 16% potential upside from the referenced share price, signaling continued confidence in STERIS’s earnings growth and medical-equipment demand. Benzinga analyst rating report
• Positive Sentiment: Fiscal first-quarter adjusted EPS came in at $2.59, ahead of the approximately $2.49 consensus estimate, while revenue rose 7.3% year over year to $1.49 billion. Growth was broad-based: Healthcare revenue increased 8%, Applied Sterilization Technologies rose 6% and Life Sciences advanced 9%. STERIS fiscal 2027 first-quarter results
• Positive Sentiment: STERIS plans to invest approximately $600 million in a North Carolina manufacturing hub expected to create about 335 jobs. The project should expand production capacity and support the company’s formulated-chemistries business over the longer term. STERIS North Carolina manufacturing investment
• Neutral Sentiment: Fiscal 2027 guidance was maintained broadly in line with expectations. Adjusted EPS is projected at approximately $11.00–$11.30 and revenue at about $6.4 billion, consistent with expected 7%–8% revenue growth. The company increased capital-expenditure guidance to roughly $450 million and expects free cash flow of about $800 million.
• Negative Sentiment: Revenue was described as modestly below some estimates despite the earnings beat, and operating cash flow declined year over year. STERIS also expects $55 million–$70 million in pretax restructuring charges tied to the North Carolina center, creating near-term cost and execution risks. STERIS earnings analysis

About STERIS

STERIS Corporation NYSE: STE is a global provider of infection prevention, contamination control and procedural products and services for the healthcare, life sciences, pharmaceutical and medical device industries. The company develops, manufactures and supports a broad portfolio of equipment and consumables designed to reduce risk of infection, maintain sterile environments and support critical clinical and manufacturing procedures.

Its offerings include sterilization and decontamination systems, instrument washers and washers-disinfectors, endoscope reprocessing solutions, surgical equipment and procedural disposables, and contamination-control products for cleanrooms and laboratories.

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