Goldman Sachs Starts ARAMARK Holdings (ARMK) at Buy, 'Consistent revenue growth with margin improvement opportunity'

Goldman Sachs analyst Lizzie Dove initiates coverage on ARAMARK Holdings (NYSE: ARMK) with a Buy rating and a price target of $33.00.

The analyst comments "We initiate on Aramark with a Buy rating and 16% upside to our 12-month price target of $33. We view Aramark as well positioned to deliver on consistent ~mid to HSD organic revenue growth over the medium term, given a well-defined runway to benefit from continued moves towards outsourcing, retention rates >95% and a significant addressable market. In addition, we see ARMK's ability to achieve its margin targets as the key bull case for the stock as 1) pricing catches up with inflation and 2) recent net new business wins over the last few years begin to be accretive to margins. We see valuation as undemanding, particularly in light of the recent Vestis spin-off which allows a greater focus on the core FSS strategy."

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

Shares of ARAMARK Holdings closed at $28.96 yesterday.

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