Nomura Securities Reiterates Buy on Cintas Corp. (CTAS) After Meeting with Management

Nomura Securities reiterated a Buy rating on Cintas Corp. (NASDAQ: CTAS), and raised the price target to $135.00 (from $124.00), after hosting meetings with management. Management used the meeting to shed light on the company's long-term margin potential, opportunities for revenue synergies and views about cost synergies.

Analyst Dan Dolev commented, "Yesterday, we hosted meetings in Cincinnati with Cintas’s CFO Mike Hansen, its IR Paul Adler and local branch management. Given concerns regarding the overall health of the U.S. economy and GK M&A anti-trust hurdles, it was encouraging to hear a management team that is as confident as ever about its ability to execute and outgrow its peers, which we believe should only further improve once the GK acquisition closes. Particularly, management provided a snapshot into local Cincinnati branch employee/customer retention (85/96%) and the business environment (positive add/stops), which are positives assuming they are somewhat reflective of the broader U.S. market."

For an analyst ratings summary and ratings history on Cintas click here. For more ratings news on Cintas click here.

Shares of Cintas closed at $114.45 yesterday.

You May Also Be Interested In

• Quest Diagnostics (DGX) PT Raised to $145 at Evercore ISI
• AGNC Investment Corp (AGNC) PT Lowered to $10.25 at Jones Trading
• Spotify (SPOT) PT Raised to $340 at Evercore ISI following strong Q1 results