11:39 AM EDT, 04/23/2024 (MT Newswires) -- Stericycle's ( SRCL ) Q1 results will face investor scrutiny on progress to the company's 14% EBITDA growth guidance in February, RBC Capital Markets said in a note emailed Tuesday.

With Stericycle ( SRCL ) trading at a "paltry" 10.5 times 2025 estimated EBITDA, not enough credit is "being given to the visibility it now has into a multiyear mid-teens" EBITDA compound annual growth rate, RBC said.

Management plans to achieve 14% EBITDA growth this year mainly via a "series of cost [and] efficiency initiatives, and to a lesser extent, revenue growth," the report said.

"With the cost actions already underway and 'more controllable,' the debate subsequently has centered on the assumed" sales growth of 3% to 5%, RBS said.

The investment firm expects Q1 revenue of $675 million, compared with the consensus estimate at $680 million. The earnings report is expected Thursday.

RBC has an outperform rating on Stericycle ( SRCL ) and a $69 price target.

Stericycle ( SRCL ) shares rose 0.6% in recent Tuesday trading.

Price: 51.25, Change: +0.31, Percent Change: +0.60