Jefferies Initiates Coverage of Steris (STE) with ‘Hold’ Rating and $263 Price Target

Jefferies initiated coverage of Steris PLC (NYSE:STE) on May 28 with a ‘Hold’ rating and a $263 price target. The research firm reiterated that the company could come under pressure due to the risk of over 14 million Medicaid and Health Insurance individuals losing coverage.

A medical technician using surgical robotics to perform minimally-invasive urologic surgery in an operating room.

Jefferies expects STERIS to grow revenue by 8% in 2026, boosted by a 110 basis points foreign exchange tailwind, surpassing the 6% consensus estimate. For 2027, however, Jefferies forecasts a more cautious 3% growth, below the consensus 6% estimate.

The firm maintains a Hold rating, citing healthcare policy uncertainties and economic risks as reasons for limited optimism despite STERIS’ strong business model. With a $263 price target, Jefferies sees little upside potential for the stock at its current level.

The company delivered solid fourth-quarter fiscal 2025 results with earnings per share of $2.74, better than the $2.60 analysts expected. Revenue met expectations at $1.48 billion. The results were better than expected as Steris benefited from effective execution in pricing, product mix, and productivity improvements. It also shrugged off challenges such as rising input costs and the impact of dental segment divestment.

STERIS plc provides infection prevention solutions worldwide through Healthcare, Applied Sterilization Technologies (AST), and Life Sciences segments. It offers cleaning products, sterilizers, surgical equipment, and maintenance services for healthcare providers, along with contract sterilization and testing for medical device and pharmaceutical companies. The Life Sciences segment supplies disinfectants, sterilants, and decontamination systems while also providing installation, repair, and maintenance services to hospitals and pharmaceutical manufacturers.

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Disclosure: None.