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Investing.com - Stifel has reiterated its Buy rating on ARAMARK Holdings (NYSE:ARMK) with a price target of $49.00, citing strong future growth potential despite somewhat softer current quarter results. According to InvestingPro data, the stock has taken a significant hit, dropping 8.43% over the past week to $40.1, suggesting potential upside to Stifel’s target.
The research firm acknowledged that ARAMARK’s fiscal third-quarter 2025 revenue and margin results were not as robust as preferred, but noted they remained within acceptable parameters for a single quarter’s performance. The company maintains a GOOD overall financial health score according to InvestingPro analysis, with revenue growing at 4.53% over the last twelve months.
Stifel highlighted ARAMARK’s strong new business wins and high customer retention rates as key factors supporting its positive outlook on the food service and facilities management company.
The firm pointed to ARAMARK’s broad-based solid pipeline as positioning the company for solid growth in fiscal year 2026, according to its analysis of current business trends.
Stifel also noted that ARAMARK’s implied revenue guidance for the fiscal fourth quarter of 2025 suggests a particularly strong organic growth rate, adding that management expressed confidence about achieving this growth target.
In other recent news, Aramark Holdings reported its fiscal third-quarter 2025 earnings, meeting expectations for earnings per share (EPS) at $0.40 but falling short on revenue forecasts. The company recorded revenue of $4.63 billion, slightly below the anticipated $4.66 billion. This revenue miss marked the second consecutive quarter of organic growth misses for Aramark. Following these results, Baird upgraded Aramark’s stock from Neutral to Outperform, citing growth potential after a reset in market expectations. Baird also raised its price target for the company to $47.00 from $43.00. Meanwhile, UBS increased its price target on Aramark to $46.00 from $44.00, maintaining a Buy rating despite the company’s softer organic growth. These developments come as analysts continue to adjust their outlooks based on Aramark’s recent performance and future growth potential.
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