Stericycle: Coronavirus pandemic to benefit medical waste business - Jefferies

Stericycle

07/04/2020 20:31

** Medical waste company Stericycle  SRCL.O  set to gain
from increased volume of medical waste arising from highly
infectious coronavirus outbreak -Jefferies 
    ** SRCL market share within medical waste market is
estimated to be ~33% -Jefferies
    ** Since anything a COVID-19 patient touches is regarded as
medical waste, the pandemic may slightly boost SRCL's business,
but this would not result in a double digit boost in volumes due
to elective surgeries being pushed out, brokerage says
    ** Adds that benefit from the pandemic would also be offset
by the company's closure of some facilities
    ** Brokerage notes that SRCL waste trucks were already
mostly filled up before outbreak began and that co has not added
a lot of trucks to keep with increased demand
    ** Jefferies' survey finds that medical waste pricing
problems are no longer an investor concern and that a much
stronger management team could result in a successful turnaround
    ** SRCL last month agreed to hand two board seats to Saddle
Point nominees at a time some investors have asked the company
to cut costs, pay down debt and sell non-core assets
 urn:newsml:reuters.com:*:nL1N2BK0N2
    ** SRCL shares, which were up 3.7% at $45.44 in afternoon
trading, had fallen 29% YTD

 (Reporting by Saumya Sibi Joseph in Bengaluru)
 ((saumya.joseph@thomsonreuters.com))