STERIS Soars 11.01% on Strong Earnings, Analyst Upgrades

STERIS (STE) shares rose 0.38% today, marking the third consecutive day of gains, with a cumulative increase of 11.01% over the past three days. The stock price reached its highest level since August 2023, despite an intraday decline.

The strategy of buying STE shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 9.77% annualized gain. This suggests a defensive approach, as the CAGR slightly underperformed the broader market, aligning with the sector's performance.

STERIS has demonstrated strong financial performance, with a notable revenue growth rate of 8.02% as of March 31, 2025. This substantial increase in top-line earnings has contributed to the company's positive market perception.

Analysts have also shown confidence in STERIS's future prospects. Morgan Stanley increased its target price for the company from $240.00 to $260.00. JMP Securities raised their target price from $265.00 to $280.00 and gave the stock a "market outperform" rating. Additionally, Stephens adjusted STERIS's price target to $280 from $250. These adjustments reflect the analysts' optimism about the company's growth potential.

STERIS's recent earnings report further bolstered investor confidence. The company reported quarterly earnings data showing $2.74 earnings per share (EPS), surpassing the consensus estimate of $2.59. The business also had revenue of $1.48 billion, slightly above analysts' expectations of $1.47 billion. This strong earnings performance has likely contributed to the recent upward trend in the stock price.