ARAMARK Holdings (ARMK) PT Raised to $46.50 at Citi

Citi analyst Leo Carrington raised the price target on ARAMARK Holdings (NYSE: ARMK) to $46.50 (from $45.00) while maintaining a Buy rating.

The analyst comments "Aramark’s Q2 results were encouraging, in particular the margin progression of 30bps, the H1 gross contract wins (in absolute terms $760m, on track for a similar level to FY24) and retention rate (c.98%, a level not seen ‘for years’). As we stated in Catering and Hotels: catering stands out for its defensive end markets, staple like demand and as a trading-down beneficiary, we see evidence that the economic environment could be a tailwind for outsourcing – in this context we expect FY26 earnings upgrades supported by Q4 organic exit rate (excluding 53rd week impact we estimate 9.6%). In this note we raise our FY25/26E adj. EBIT 0.4%/1.8% as we reflect the impressive net new business outlook and margin progression, dropping though to 2.2%/5.8% increases to our FY25/26E EPS (assumes further $200m of share buybacks in each of FY25/26E). On unchanged valuation methodology we raise our TP to $46.50 (from $45)."

You May Also Be Interested In

• Linde (LIN) PT Lowered to $563 at Bernstein SocGen Group
• Freedom Broker Upgrades IES Holdings (IESC) to Buy
• Stifel Reiterates Buy Rating on salesforce.com (CRM)