Steris Set For Margin Growth As Cantel Costs Roll Off

Narrow-moat Steris ended the fiscal year on a high note with top-line outperformance, and while reported margin was lower on a year-over-year basis, this was mainly due to costs from the Cantel integration, and margin expanded on an adjusted basis. After rolling our model, we are increasing our fair value estimate to $201 per share from $189, and see shares as fairly valued.