Barclays Reiterates an 'Underweight' on Cintas (CTAS); Continues to Prefer MAN, RHI and ECO

Barclays reiterates an 'Underweight' on Cintas (NASDAQ: CTAS), raises PT from $25 to $28.

Barclays analyst says, "What to do with the stock? We expect Cintas to benefit from a modest cyclical recovery in employment, which has contributed to improving revenue trends in recent quarters. However, we are concerned that rising commodity prices may dampen the expected gross margin recovery that would normally accompany a cyclical employment recovery."

"We continue to prefer other stocks within our Business & Professional Services universe, including Manpower (NYSE: MAN) and Robert Half (NYSE: RHI), which are far better cyclical recovery plays, in our view, and ECL, which is a high-quality franchise with faster growth potential and better returns. We rate MAN, RHI, and EcoLab (NYSE: ECL) Overweight."

For more ratings news on Cintas click here and for the rating history of Cintas click here.

Shares of Cintas closed at $30.70 yesterday.

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