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KeyBanc Starts Cintas (CTAS) at Buy; ttractive Growth Profile; Shareholder Value Creation Opportunities Evident

December 14, 2011 7:37 AM EST Send to a Friend
Get Alerts CTAS Hot Sheet
Price: $68.65 -2.75%

Rating Summary:
    7 Buy, 9 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 16 | Down: 12 | New: 33
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KeyBanc initiates coverage on Cintas (NASDAQ: CTAS) with a Buy. PT $36.00.

KeyBanc analyst says, "CATALYST #1: Adjacent Businesses Should Bolster Top Line and EPS - In our view, CTAS's emphasis on growing its non-legacy Document Management and First Aid, Safety and Fire Protection Services segments not only provide diversification, but should also be incrementally accretive to earnings."

"CATALYST #2: CTAS's Track Record Implies Further Value Creation - Opportunities We believe CTAS has a strong track record of executing investor value creation events."

"CATALYST #3: Despite Near-Term Headwinds, Volume Growth Should Drive Margin Expansion - Despite near-term mix issues, as well as energy and merchandise cost headwinds, which may dampen margins, we believe CTAS should still enjoy margin expansion as it benefits from greater volume absorption. In our view, CTAS has significant brick-and-mortar capacity in its current national footprint to push through incremental volume."

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 $30.00 yesterday.




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