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Investing.com - UBS raised its price target on ARAMARK Holdings (NYSE:ARMK) to $46.00 from $44.00 on Wednesday, while maintaining a Buy rating on the stock. Currently trading at $39.56, the food service giant commands a market capitalization of $10.4 billion and maintains a 12-year streak of consistent dividend payments, according to InvestingPro data.
The price target increase comes despite ARAMARK shares falling 8% on Tuesday after the company reported softer organic growth in its fiscal third quarter, marking the second consecutive quarter of organic growth misses.
UBS noted that management had previously expressed bullish sentiment on growth acceleration, which had driven shares higher ahead of the earnings report, creating a contrast with the actual results.
The research firm recommended patience for investors, highlighting that ARAMARK management reiterated expectations for over 8% growth in the fiscal fourth quarter, which could support stronger growth momentum into fiscal 2026.
UBS also pointed to ARAMARK’s faster post-pandemic growth and steadier recent margin performance as factors that could drive multiple expansion if the company delivers on its growth and margin expectations.
In other recent news, Aramark Holdings reported its third-quarter earnings for 2025, which showed a mixed performance. The company met expectations for earnings per share (EPS), posting a figure of $0.40. However, Aramark’s revenue came in slightly below forecasts, reaching $4.63 billion compared to the anticipated $4.66 billion. This revenue shortfall was noted by analysts as a key factor in the company’s financial disclosures. Additionally, the earnings report did not indicate any significant changes in the company’s strategic direction or operations. Despite the revenue miss, the earnings per share alignment with expectations suggests stable profitability. Analyst firms have not provided any new upgrades or downgrades following the earnings release. Aramark’s recent developments continue to be monitored closely by investors and analysts alike.
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