Cintas stock rating reiterated at Buy by Truist Securities

Investing.com - Truist Securities has reiterated its Buy rating on Cintas (NASDAQ:CTAS) with a price target of $255.00, which aligns with the highest analyst target price. The stock currently trades at $185.28, representing potential upside of 19% from current levels, though InvestingPro analysis suggests the company is currently overvalued based on its Fair Value model.

The firm believes a potential acquisition of competitor UniFirst would be more feasible in the current regulatory environment, addressing previous investor concerns about antitrust scrutiny.

Truist estimates that UniFirst holds approximately 6% market share in domestic Uniform Services, making it the third-largest player in the industry, while a combination with Cintas would reduce major national uniform rental providers from four to three.

The research firm notes that Cintas could argue its primary competition comes from Amazon (NASDAQ:AMZN) and Walmart (NASDAQ:WMT), which facilitate in-house uniform programs, rather than just direct industry competitors.

Cintas currently services approximately 1 million of the 16 million businesses in North America, and Truist estimates this would increase to 1.3-1.4 million businesses if a UniFirst acquisition were completed. With impressive gross profit margins of 50.1% and a market capitalization of $74.46 billion, Cintas has demonstrated financial strength, having maintained dividend payments for 33 consecutive years. For deeper insights into Cintas’s financial health and valuation metrics, access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Cintas Corporation reported its first-quarter fiscal 2026 earnings, surpassing expectations with an earnings per share of $1.20, slightly above the forecasted $1.19. The company’s revenue also exceeded predictions, reaching $2.72 billion against an anticipated $2.7 billion. Additionally, Cintas announced a quarterly cash dividend of $0.45 per share, payable on December 15, 2025, and revealed a new share repurchase program authorizing up to $1 billion in buybacks, supplementing an existing program with $0.7 billion remaining. Shareholders approved all nominated directors and executive pay at the recent annual meeting, with each nominee receiving more votes in favor than against. On the analyst front, Rothschild Redburn upgraded Cintas stock from Sell to Neutral, raising its price target to $184.00, while Bernstein initiated coverage with a Market Perform rating and a price target of $200.00. These developments reflect ongoing investor interest and strategic financial maneuvers by Cintas.

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