William Blair initiated research coverage of Sterling Check Corp. (STER $25.04), a leading, global provider of technology-enabled background screening products.
Analyst Andrew Nicholas estimated that the company would generate EPS of $0.86 in 2021 and $1.00 in 2022.
“As a leading, global provider of technology-enabled background screening solutions, Sterling should benefit from a sizable addressable market (we estimate the core background screening market to be roughly $4 billion-$6 billion in size) growing solidly in the mid- to upper single digits,” Nicholas said. “Market growth is enhanced by several secular trends, including: 1) increasing hiring and job turnover, 2) growth in the gig economy, 3) increased frequency of background screens, and 4) heightened regulation and compliance scrutiny tied to hiring practices.”
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Current Ratings Distribution (as of 10/15/21)
Outperform (Buy): 76%
Market Perform (Hold): 24%
Underperform (Sell): 1%
Inv. Banking Relationships*
Outperform (Buy): 31%
Market Perform (Hold): 14%
Underperform (Sell): 0%
* Percentage of companies in each rating category that are investment banking clients, defined as companies for which William Blair has received compensation for investment banking services within the past 12 months.
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