UPDATE: Jefferies Initiates Cintas at Buy on Earnings Growth Due to Re-Industrialization
In a report published on Wednesday, Jefferies analyst Dan Dolev initated coverage on Cintas (NASDAQ: CTAS), with a Buy rating and a price target of $53.
In the report, Jefferies stated, "With $4.1bn in sales, Cintas is the largest uniform rental company in the US (32% share). We use the S.E.R.V framework to identify opportunities in the US Business Services Sector. We see two key longterm opportunities for Cintas: 1) Cintas looks best positioned to take advantage of a ~$6bn (1/3 of the market) un-vended market opportunity; and 2) Divesting the document shredding business could unlock value (IRM's EV/EBITDA is ~22% higher) and help avoid potential secular headwinds from paperless offices."
Cintas closed on Wednesday at $44.99.
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