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AST Business Growth & Strategic Acquisitions Support STERIS Stock
ZACKSยท 2025-05-21 16:41
Core Insights - STERIS is enhancing its product offerings through new acquisitions and partnerships, currently holding a Zacks Rank 2 (Buy) [1] Group 1: Growth Drivers - The Healthcare segment of STERIS is benefiting from the successful market adoption of its infection prevention consumables and capital equipment, with a reported revenue growth of 5% year over year for Q4 fiscal 2025 [2] - The Applied Sterilization Technologies (AST) division saw a 9% reported growth year over year in Q4 fiscal 2025, driven by a 6% increase in service revenues, with organic revenues in high single digits [3] - STERIS is experiencing increased bioprocessing demand, while global demand from MedTech customers remains stable [3] Group 2: Strategic Acquisitions - STERIS frequently engages in strategic acquisitions and joint ventures, including the recent purchase of surgical instrumentation and sterilization container assets from BD, which enhances its Healthcare product offerings [4] - The company anticipates a strong fiscal year ahead, with reported revenues from continuing operations expected to grow approximately 6-7% in fiscal 2026 [4] Group 3: Stock Performance - Over the past three months, STERIS shares have risen 13.6%, contrasting with an 11.8% dip in the industry, driven by sustained growth in bioprocessing demand and strategic acquisitions [5]