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On Thursday, RBC Capital maintained its Sector Perform rating and $215.00 price target for Cintas (NASDAQ:CTAS), currently trading at $206.05. The decision follows Cintas’ announcement of a 7.9% organic revenue growth, which RBC Capital attributes to broad-based growth amid macroeconomic uncertainties. According to InvestingPro data, the company has achieved an impressive 8.12% revenue growth over the last twelve months, with a substantial market capitalization of $83.17 billion. Cintas reported earnings per share (EPS) of $1.13, which included a $0.03 benefit from a $15 million property sale.
The company’s fiscal year 2025 revenue guidance has been tightened, primarily due to foreign exchange headwinds. Despite this, Cintas has kept its organic revenue growth guidance at the upper end of 7.7%. RBC Capital notes that Cintas’ incremental margins were strong at 44%, bolstered by volume growth, operating leverage, and solid execution. InvestingPro analysis reveals the company maintains impressive gross profit margins of 49.62% and has earned a "GOOD" financial health rating. For the fourth quarter of 2025, Cintas anticipates incremental margins to align with its mid-term target range of 25-35%.
Following the conclusion of considerations to acquire UniFirst (NYSE:UNF) Corporation, Cintas is now positioned to focus on smaller, strategic acquisitions and to potentially engage in share buybacks when opportunities arise. The company’s strategic moves are seen as a way to strengthen its market position and enhance shareholder value.
Cintas’ performance and outlook indicate its resilience and adaptability in navigating the current economic climate. The company’s robust margin performance and steadfast growth guidance reflect its effective operational management and strategic planning. As the fiscal year progresses, Cintas aims to maintain its growth trajectory and capitalize on market opportunities.
In other recent news, Cintas Corporation reported its fiscal third-quarter earnings for 2025, surpassing analyst expectations with an earnings per share (EPS) of $1.13, compared to the forecast of $1.05. Revenue also exceeded projections, reaching $2.61 billion. Following these results, UBS increased its price target for Cintas to $240, maintaining a Buy rating, citing the company’s strong operational execution and improved EPS guidance. Truist Securities also raised its price target to $230, following Cintas’ impressive third-quarter performance and slightly increased fiscal year 2025 revenue and EPS guidance. Meanwhile, Morgan Stanley (NYSE:MS) adjusted its price target to $213, maintaining an Equalweight rating, based on an optimistic outlook for future earnings before interest, taxes, depreciation, and amortization (EBITDA).
Stifel analysts also raised their price target for Cintas to $204, maintaining a Hold rating, noting stabilization in the pricing environment. In a separate development, Cintas ended its pursuit of acquiring UniFirst Corporation, as the controlling family of UniFirst was not open to a sale. Despite this, analysts at Truist Securities expressed confidence in Cintas’ resilience and growth potential. The company’s strong quarterly results and the upward revisions in financial guidance have reinforced investor confidence, reflected in the positive analyst ratings and increased price targets.
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