Cintas To Thrive In First Aid And Fire Segments, Boosting Margins And Share Repurchases - This Analyst Says
Portfolio Pulse from Lekha Gupta
Truist Securities analyst Jasper Bibb initiated coverage on Cintas Corp (NASDAQ:CTAS) with a Buy rating and a price target of $625. Bibb expects Cintas to achieve high incremental margins and a 10%+ increase in FY26 consensus EPS over the next 24 months due to moderating wage inflation, favorable material pricing trends, and Smart Truck initiative efficiencies. The First Aid and Fire segments are projected to deliver a ~10% organic CAGR over five years, improving segment margins to over 20%. Share repurchases are anticipated to increase in FY24/FY25 with net leverage at 1.0x. Bibb's EPS estimates for FY25 and FY24 are $16.92 and $14.22, respectively, both above consensus.
November 13, 2023 | 6:58 pm
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Cintas Corp received a Buy rating from Truist Securities with a price target of $625, indicating a positive outlook on the company's future performance, particularly in the First Aid and Fire segments.
The initiation of coverage by Truist Securities with a Buy rating and a high price target suggests a strong bullish sentiment towards Cintas Corp's stock. The analyst's expectations of high incremental margins and significant EPS growth over the next two years, along with increased share repurchases, are likely to be viewed positively by investors, potentially leading to a short-term increase in the stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100