What happened

Shares of Stericycle (NASDAQ:SRCL) rallied 13.5% in September, according to data provided by S&P Global Market Intelligence. Driving up shares of the medical waste disposal specialist was some positive commentary by an analyst.

So what

Stericycle's management team met with analysts last month to discuss the progress of the company's turnaround strategy. An analyst at Stifel came away so impressed that the firm added Stericycle's stock to its "Select List" in place of competitor Clean Harbors. Stifel's analyst has increasing confidence in the company's prospects after meeting with its CEO and CFO over dinner. The analyst believes they can make the right move to streamline the company's portfolio of businesses to a core focused on the North American and European markets.

A dollar bill folded as an arrow that goes down but them back up higher.

Image source: Getty Images.

In addition to adding Stericycle to its Select List, Stifel reiterated its buy rating on the stock, as well as its $70 price target. This view implies that shares have significant upside considering that the stock is currently below $50 even after last month's big rally.

Now what

Stericycle's stock has been in a rut for years, falling more than 35% in the past three years due to struggles across many of its business segments. However, with the company's new management team working hard to turn around its struggling operations, analysts now see Stericycle as an intriguing value stock. They believe that if management can continue making progress on initiatives to streamline the company, shares could have lots of upside ahead. That makes the stock an intriguing one for value investors to consider digging into a bit more deeply.