KeyBanc Downgrades Cintas (CTAS) to Hold
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Price: $44.84 -1.12%
Rating Summary:
5 Buy, 7 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Rating Summary:
5 Buy, 7 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Trade CTAS Now!
KeyBanc downgraded Cintas (NASDAQ: CTAS) from Buy to Hold.
The firm said while they are not negative on the name, they expect the shares to perform more "in line" rather than outperform.
The firm cited following reasons: 1) with current employment levels exhibiting choppy, albeit moderating improvement, suggesting limited growth in add/stops, we believe the shares lack a meaningful near-term catalyst; 2) its Document Management business has less visibility and faces scrap paper price headwind over at least the next several quarters, which could impede further multiple expansion; 3) since initiating coverage on December 12, 2011, CTAS's shares have outperformed the group and broader market on a total return basis; over this time period, CTAS's shares are up 27.3% vs. GKSR up 26.7% (including a recent $6.00 one-time dividend), UNF up 2.7% and the S&P500 up 8.2%; and thus 4) valuation is less compelling vs. GKSR (see the above bullet)."
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 $37.85 yesterday, with a 52 week range of $26.39-$40.61.
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The firm said while they are not negative on the name, they expect the shares to perform more "in line" rather than outperform.
The firm cited following reasons: 1) with current employment levels exhibiting choppy, albeit moderating improvement, suggesting limited growth in add/stops, we believe the shares lack a meaningful near-term catalyst; 2) its Document Management business has less visibility and faces scrap paper price headwind over at least the next several quarters, which could impede further multiple expansion; 3) since initiating coverage on December 12, 2011, CTAS's shares have outperformed the group and broader market on a total return basis; over this time period, CTAS's shares are up 27.3% vs. GKSR up 26.7% (including a recent $6.00 one-time dividend), UNF up 2.7% and the S&P500 up 8.2%; and thus 4) valuation is less compelling vs. GKSR (see the above bullet)."
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 $37.85 yesterday, with a 52 week range of $26.39-$40.61.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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KeyBanc, Standard & Poor's, Dividend
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