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SHC: Follow-On Equity Offering Will Drive Bullish Share Performance Next Year

SHC: Recent Equity Offerings And Lock-Up Expiry Will Shape Market Outlook

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SHC
AnalystConsensusTarget
Not Invested
Published 02 Sep 2024

Update shared on 15 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
27.3%
7D
-0.5%

Narrative Update

Analysts have modestly raised their price target on Sotera Health, citing fine tuned assumptions around discount rates, revenue growth, margins, and future earnings multiples as justification for a slightly higher implied fair value near $18.93 per share.

What's in the News

  • Sotera Health has completed a follow-on equity offering of approximately $471 million, issuing 30 million shares of common stock at about $15.70 per share (Key Developments)
  • The company has filed a separate follow-on equity offering totaling roughly $480.3 million for 30 million shares of common stock, with an indicated price of about $16.01 per share (Key Developments)
  • Executive officers, directors and selling stockholders have agreed to a lock-up on 284,093,929 common shares, restricting most sales and hedging activity from November 6, 2025 to December 7, 2025 (Key Developments)
  • Certain restricted stock units held by insiders are also subject to the same 31-day lock-up period ending December 7, 2025 (Key Developments)
  • Options held by executives, directors and selling stockholders will likewise be restricted during the November 6 to December 7, 2025 lock-up window (Key Developments)

Valuation Changes

  • Fair Value: Unchanged at an implied price of approximately $18.93 per share.
  • Discount Rate: Fallen slightly from about 8.81 percent to roughly 8.81 percent, reflecting a marginally lower perceived risk profile.
  • Revenue Growth: Essentially unchanged at approximately 6.23 percent, indicating stable long term growth expectations.
  • Net Profit Margin: Stable at about 27.55 percent, with only negligible model refinements.
  • Future P/E: Edged down slightly from around 18.30x to about 18.30x, signaling a marginally more conservative valuation multiple assumption.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.