IonQ CRO Alameddine Rima sells $4.6m in shares
Investing.com - Stifel has reduced its price target on ARAMARK Holdings (NYSE:ARMK) to $44.00 from $49.00 while maintaining a Buy rating on the stock. The new target represents a 21.7% upside from the current price of $36.15, with ARMK trading slightly below InvestingPro’s calculated Fair Value.
The price target adjustment reflects client-driven timing delays in new contract starts across Aramark’s Corrections, Workplace Experience, and Healthcare divisions, which have pushed expected revenue into fiscal year 2026. This aligns with InvestingPro data showing 6 analysts have recently revised their earnings expectations downward for the upcoming period.
Despite the target reduction, Stifel noted that Aramark’s underlying business momentum remains strong, with the delays primarily affecting the timing of revenue recognition rather than indicating fundamental business weakness. This view is supported by Aramark’s solid 4.02% revenue growth over the last twelve months to $17.87 billion and an overall Financial Health score rated as "GOOD" by InvestingPro.
Stifel’s new target price represents an enterprise value to calendar year 2026 EBITDA multiple of 11x, which is a one-turn discount to competitor Compass Group’s 12x multiple.
The research firm expects the valuation gap between Aramark and Compass to narrow as Aramark continues to deliver healthy growth, expand margins, and reduce leverage.
In other recent news, Aramark Holdings reported its fourth-quarter 2025 earnings, which did not meet analysts’ expectations. The company announced an earnings per share (EPS) of $0.57, which was below the anticipated $0.64. Additionally, Aramark’s revenue for the quarter was $5.05 billion, falling short of the expected $5.16 billion. These financial results are among the latest developments concerning the company. No other major news such as mergers, analyst upgrades, or downgrades were reported at this time. Investors may find this information critical as they assess the company’s recent performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.