Benzinga - by Priya Nigam, Benzinga Staff Writer.
Shares of Cintas Corporation (NASDAQ: CTAS) Tuesday rose, ahead of the company’s release of fiscal first-quarter results on Sept. 26.
With increased prospects of the U.S. economy’s “soft landing,” there’s greater optimism around Cintas’ sales and margin momentum, according to BofA Securities.
The Cintas Analyst: Heather Balsky upgraded the rating for Cintas from Neutral to Buy, while raising the price target from $523 to $580.
The Cintas Thesis: The company seemed “poised for EPS beats driven by sales and margin outperformance,” Balsky said in the upgrade note.
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Cintas is a beneficiary of the “ongoing secular shift to outsourcing,” and its margins “still have room for expansion driven by even greater route density and (impressively) additional incremental efficiencies,” the analyst stated.
Cintas is a “best-in-breed company,” being a market leader in uniform rental and other facility services and given its “admirable record for strong execution and healthy capital returns,” he added.
CTAS Price Action: Shares of Cintas closed up 2.80% at $511.79 at market close Tuesday. After-hours trading saw shares up 0.25% at $513.07.
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