UPDATE: Citigroup Lowers PT on Cintas Corp to $45
Citigroup maintained a Buy rating on Cintas Corp (NASDAQ: CTAS) and lowered its price target from $47 to $45.
Citigroup commented, “We maintain our view that CTAS can deliver attractive top and bottom line growth but recent macro uncertainty and lack of new job growth has moderated our growth assumptions. We have lowered our 2013 Revenue and EPS estimates by 1% and 3% respectively to $4.31B and $2.54 (down from $4.34B and $2.61 previously). Our Target Price drops to $45 from $47 based on a slightly lowered target P/E of 16.5x our Calendar Year EPS estimate of $2.71 (or 16x FY14E EPS of $2.81). Our lower P/E assumption reflects a more muted growth trajectory (and is more consistent with current forward P/E). Improvement in small/medium sized business sentiment could help deliver upside to our estimates, but for now we are modestly more cautious.”
Cintas Corp closed at $39.41 on Monday.
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