Goldman Sachs Upholds Buy Rating on Sterling Check, Reduces Price Target to $18 for 2023.
March 10, 2023
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Goldman Sachs recently released an update on their rating for Sterling Check ($NASDAQ:STER). Despite this, Goldman Sachs has remained confident in the long-term potential of the company and believes that it is well-positioned to capitalize on the current market trends. The reduction in price target is based on the overall market uncertainties and the impact they might have on Sterling Check’s performance in the near future. Despite this, Goldman Sachs remains optimistic that the company will be able to succeed and believes that their current investment strategy will serve them well in the long run.
They have also highlighted the company’s strong competitive advantages and its experienced management team as key factors for success. They remain optimistic about the company’s long-term potential and believe that their current investment strategy will serve them well in the coming years.
Price History
This decision comes after the company’s stock opened at $13.0 and closed at $13.2 on Friday, up by 1.2% from the last closing price of $13.0. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sterling Check. More…
| Total Revenues | Net Income | Net Margin |
| 766.78 | 19.41 | 2.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sterling Check. More…
| Operations | Investing | Financing |
| 104.26 | -20.14 | -25.94 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sterling Check. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.41k | 670.61 | 7.62 |
Key Ratios Snapshot
Some of the financial key ratios for Sterling Check are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.5% | – | 7.5% |
| FCF Margin | ROE | ROA |
| 11.0% | 4.9% | 2.6% |
Analysis
As GoodWhale, we took a look at the financials of STERLING CHECK. Our Star Chart classified the company as a ‘cheetah’, indicating that it achieved high revenue or earnings growth, but is considered less stable due to lower profitability. This may appeal to investors who are looking for higher growth prospects, but understand the risks associated with such a business model. When taking a deeper dive into STERLING CHECK’s financials, it is clear that the company is strong in medium in growth, profitability and weak in asset, dividend. However, the company has a high health score of 8/10 with regard to its cashflows and debt, indicating that STERLING CHECK is capable of safely riding out any crisis without the risk of bankruptcy. Thus, investors who are looking for higher growth prospects with a relatively lower risk factor may find STERLING CHECK an attractive investment option. More…
Peers
The competition among Sterling Check Corp and its competitors is intense. Scryb Inc, Rackspace Technology Inc, and Way 2 Vat Ltd are all jockeying for position in the market, and each company has its own strengths and weaknesses. Sterling Check Corp has a strong reputation for customer service and a wide array of products, while Scryb Inc has a more limited product line but offers competitive prices. Rackspace Technology Inc is known for its innovative products and services, while Way 2 Vat Ltd has a more traditional approach to business.
– Scryb Inc ($OTCPK:SCYRF)
Scryb Inc is a publicly traded company with a market capitalization of $16.73 million as of 2022. The company has a negative return on equity of 105.94%. Scryb Inc is engaged in the business of providing online marketing and advertising services.
– Rackspace Technology Inc ($NASDAQ:RXT)
Rackspace Technology, Inc. is an American managed cloud computing company based in San Antonio, Texas. The company offers a suite of cloud computing services, including managed hosting, cloud computing, and cloud storage. Rackspace was founded in 1998 and went public in 2008. As of 2018, it employed over 4,000 people.
– Way 2 Vat Ltd ($ASX:W2V)
Way 2 Vat Ltd is a company that provides VAT services. It has a market cap of 4.83M as of 2022. The company was founded in 2006 and is headquartered in London, United Kingdom.
Summary
Investing analysts at Goldman Sachs have maintained their “Buy” rating on Sterling Check stock, while lowering their price target to $18 for 2023. Although the overall market sentiment has been mostly negative, analysts at Goldman Sachs remain bullish on the stock, citing its strong long-term growth potential. Investors should take note of Sterling Check’s international presence, sound financials, and broad customer base as attractive features of the company.
Furthermore, the company’s commitment to innovation and research & development initiatives is an appealing factor that could drive the company’s potential in the future. With the right approach, investors can expect positive returns from Sterling Check in the years to come.
