Stifel maintains Hold rating on Cintas stock amid strong earnings

Published 17/07/2025, 15:36
Stifel maintains Hold rating on Cintas stock amid strong earnings

Investing.com - Stifel has reiterated its Hold rating and $204.00 price target on Cintas (NASDAQ:CTAS) following the company’s latest earnings report. According to InvestingPro analysis, the stock is currently trading above its Fair Value, with a P/E ratio of 48.8x.

The uniform and business services provider posted strong results with revenue, earnings per share, and free cash flow all exceeding analyst estimates. Organic revenue growth reached 9.0%, marking the strongest quarterly growth rate for the company this fiscal year. The company maintains impressive gross profit margins of 49.9% and has demonstrated strong financial health with a return on equity of 40%.

Growth was primarily driven by Cintas’s First Aid & Safety and Other divisions, while the Uniforms division reported slightly lower revenue and margins than anticipated.

Cintas provided fiscal year 2026 revenue guidance that places current estimates toward the lower end of the projected range, suggesting potential upward revisions to revenue forecasts. The company’s FY26 earnings per share guidance positions some analyst estimates at or slightly above the company’s projected range.

The company scheduled its earnings conference call for 10:00 a.m. EST on Thursday.

In other recent news, Cintas Corporation has been the focus of several analyst evaluations. RBC Capital Markets raised its price target for Cintas to $240, maintaining a Sector Perform rating. RBC analysts highlighted Cintas’ consistent outperformance and projected revenue growth between 6.5% and 8% for fiscal year 2026. They noted the company’s strategic focus on key vertical markets and potential margin improvements supported by technological investments. In contrast, Redburn-Atlantic downgraded Cintas from Neutral to Sell, citing concerns over the company’s valuation and potential economic challenges. The firm maintained a price target of $171, suggesting an 18% downside. Meanwhile, Wells Fargo (NYSE:WFC) upgraded Cintas to Equal Weight, raising the price target to $221. Wells Fargo expects Cintas to capture additional market share, particularly from its competitor Vestis, potentially boosting earnings per share by 19%. These developments reflect varying perspectives on Cintas’ future performance amid changing market conditions.

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