KeyBanc Capital Markets Initiates Cintas Coverage: Buy, $36 PT
KeyBanc Capital Markets initated Cintas (NASDAQ: CTAS) coverage with a Buy rating and $36 price target in a research report published today.
In the report, KeyBanc Capital Markets states, "Despite near-term mix issues, as well as energy and merchandise cost headwinds, which may dampen margins, we believe CTAS should still enjoy margin expansion as it benefits from greater volume absorption. In our view, CTAS has significant brick-and-mortar capacity in its current national footprint to push through incremental volume. Additionally, CTAS is poised to benefit from strategic SG&A investments from fiscal 3Q10-2Q11 that could be leveraged with greater volume and foster margin expansion."
Shares of Cintas closed today at $30.00, down 0.20% from Monday's market close.
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Tags: KeyBanc Capital Markets