UPDATE: Morgan Stanley Reiterates Underweight Rating, Raises PT on Cintas

In a report published Monday, Morgan Stanley reiterated its Underweight rating on Cintas Corporation CTAS, and raised its price target from $32.00 to $38.00. Morgan Stanley noted, “We had anticipated that Morgan Stanley economists' forecasts of sluggish US economic growth for the rest of ‘12 and ‘13 would lead to CTAS missing earnings estimates and the stock trading off. This has happened somewhat, with Street F13 estimates cut to our forecasts and the stock trading off following the last two earnings releases (last one included management's F13 guidance). However, the stock has not de-rated and we no longer expect it to. Investors clearly appreciate the relative safe haven of CTAS' lack of European exposure and less cyclicality.” Cintas Corporation closed on Friday at $39.29.