KeyBanc Capital Markets Initiates UniFirst Coverage: Hold

KeyBanc Capital Markets initiated UniFirst

coverage Tuesday after the bell with a Hold rating. In the report, KeyBanc Capital Markets states, "Though UNF faces merchandise cost headwinds from inventory replenishment/mix, which is expected to dampen margins in the near term, we believe capex spend and execution should drive structurally higher profitability. As merchandise headwinds ease in early FY13, we believe operating margins should recover to prerecession levels of 11% and have further upward bias, potentially to the low-teens." Shares of UniFirst closed today at $57.43, up 1.48% from Tuesday's market close.