FY'27 Outlook Outweighs FQ4 Results Headline, Provides Clearing Event; Reit OW

研报英文原文证据摘录

FY'27 Outlook Outweighs FQ4 Results Headline, Provides Clearing Event; Reit OW

C O M PA N Y N O T E

M a y 1 2 , 2 0 2 6

STERIS Plc (STE) Overweight

CONCLUSION PRICE: US$201.85

STERIS reported FQ4-26 results yesterday and held its conference call today, capping TARGET: US$270.00

a record fiscal year (+7% cc org revs, +10% adj EPS). Bears are attempting to pick ~22x NTM+1 EPS of $12.27

at a handful of items today (slight FQ4 miss vs. consensus, lower AST growth in 1H,

FCF outlook lower-than-expected, limited upside to FY'27 P&L guidance), but shares are Jason Bednar, CFA

Sr. Research Analyst, Piper Sandler & Co.shaking off those questions with a modest move higher today (+4%) after having already 414 831-6392, jason.bednar@psc.com

been under considerable pressure the last several weeks on macro concerns translating to

Joseph Downing

a below-Street EPS guide. With that outcome not materializing and management instead Research Analyst, Piper Sandler & Co.

guiding revenue and EPS both slightly above Street, this has the feeling of a much-needed 212 284-9338, joseph.downing@psc.com

clearing event for STE. We continue to like shares at current levels and would use today's Andrea Irawan

update as an opportunity to more safely get involved with one of the cleanest earnings Research Analyst, Piper Sandler & Co.

compounders in large-cap medtech. Reiterate OW, PT to $270. 212 284-9587, andrea.irawan@psc.com

Changes Previous Current

• FQ4-26 Recap + Guidance. STE hosted its FQ4 call this morning after posting results Rating — Overweight

yesterday afternoon, with revenue of $1,588M/+5% cc organic y/y vs. the Street's Price Tgt US$300.00 US$270.00

$1,595M and our $1,598M/+5.7% organic. As discussed in our prelim review, LifeSci FY27E Rev (mil) US$6,345.0 US$6,387.4

(+6.2% org cc vs.