Cintas stock price target raised to $222 from $204 at Stifel

Investing.com - Stifel raised its price target on Cintas (NASDAQ:CTAS) to $222.00 from $204.00 on Thursday, while maintaining a Hold rating on the uniform rental company’s stock. According to InvestingPro data, the company currently trades at a P/E ratio of 50.54x and has a market capitalization of $89.67 billion.

The firm cited Cintas’s continued strong performance, noting that the first six weeks of fiscal year 2026 are trending as expected and customer retention rates have reached all-time highs. The company maintains impressive gross profit margins of 49.92% and has achieved revenue growth of 7.79% over the last twelve months.

Stifel’s updated model incorporates modestly higher revenue growth driven by the Uniform and First Aid & Safety units, slightly lower margins due to investments, and a slightly higher share count as the company conducts share repurchases at current elevated stock levels.

The new $222 price target reflects approximately 28.5x Stifel’s calendar year 2026 EBITDA estimate on an enterprise value basis, and roughly 43x its calendar year 2026 earnings per share estimate.

The firm maintained its Hold rating despite the price target increase, suggesting limited upside potential at current valuation levels despite Cintas’s solid business performance and free cash flow generation at 100% of net income.

In other recent news, Cintas Corporation reported its fourth-quarter fiscal year 2025 earnings, surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $1.09, exceeding the forecasted $1.07, while revenue reached $2.67 billion, surpassing the expected $2.63 billion. This marks an 8% year-over-year increase in total revenue, with a full-year revenue of $10.34 billion, up 7.7% from the previous year. Cintas also achieved an all-time high operating margin of 22.8%. The company projects revenue growth for fiscal year 2026 to be between $11.0 billion and $11.15 billion, with diluted EPS expected to range from $4.71 to $4.85.

Despite these positive financial results, Cintas’ stock experienced a pre-market decline. The company highlighted significant investments in technology and efficiency improvements as part of its growth strategy. Analysts from firms like Goldman Sachs and Truist Securities noted the company’s strong performance and guidance, emphasizing the robust growth in Cintas’ First Aid business and its ongoing exploration of AI and machine learning opportunities. The company remains focused on innovation and maintaining strong customer relationships to drive future growth.

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