Nomura Securities Starts Cintas (CTAS) at Buy

Nomura Securities initiates coverage on Cintas (NASDAQ: CTAS) with a Buy rating and a price target of $102.00.

Analyst Dan Dolev commented, "We initiate coverage of Cintas Corporation (CTAS) with a Buy rating and a $102 target price. CTAS is the largest uniform rental company in the U.S. Despite stellar performance, we see continued strength in excess of its end markets and peers helped by: (1) CTAS being best positioned to benefit from a large $5-6bn un-vended market, (2) multiple cross- and up-selling opportunities to CTAS’s ~1mn customer base, (3) ever widening growth gap vs. end markets and peers, (4) our proprietary multivariate regression analysis predicting market stability, (5) ongoing mix shift into less cyclical services (e.g., hygiene) and markets (e.g., healthcare), and (6) SAP margin headwind more muted than expected, helped by CTAS’s proven cost-cutting expertise."

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 $90.31 yesterday.

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