Cintas (CTAS) PT Raised to 'Street High' $411 at Goldman Sachs Following Expert Call

Goldman Sachs analyst George Tong raised the price target on Cintas (NASDAQ: CTAS) to a "Street High" $411.00 (from $387.00) while maintaining a Conviction Buy rating after an expert call with the CEO of TRSA, the largest uniform rental trade organization in the U.S., which strengthens their growth outlook for uniform rentals and ancillary services.

The analyst commented, "We have a strengthened view of Cintas’ growth outlook for uniform rentals and ancillary services following an expert call we hosted with Joe Ricci, President & CEO of TRSA, the largest uniform rental trade organization in the U.S. Based on our expert call, we believe the domestic uniform rental industry is undergoing an attractive recovery, with revenues on track to reach pre-COVID levels by the end of 2021. Sustained strength in hygiene demand, the leverage of new hygiene customers into the non-programmer market for uniform rentals and penetration of the healthcare industry represent structural tailwinds to top-line growth. Adoption of digitization and automation, of which Cintas is at the forefront, serves as a driver of cost efficiencies in a tight labor market, as well, in our view. We reiterate our Buy rating (on CL), raise our estimates and increase our 12-month price target from $387 to $411."

You May Also Be Interested In

• Fiserv (FISV) PT Lowered to $60 at Freedom Broker
• Zedcor Inc (ZDC:CN) PT Raised to Cdn$7.75 at Desjardins
• Solar Industries (SOIL:IN) PT Raised to INR23,500 at ICICI Securities