UPDATE: Morgan Stanley Reiterates on Aramark on More Bullish View on Margin Expansion

In a report published Thursday, Morgan Stanley analyst Suzanne E. Stein reiterated an Overweight rating on Aramark ARMK, and raised the price target from $29.00 to $31.00. In the report, Morgan Stanley noted, “We remain positive on Aramark, and believe it is on a path to achieve strong margin gains for F14. The company posted solid first quarter results (see our earlier note). Strong sales with existing customers were complemented by customer wins, and the company continued to make progress on efficiency initiatives. We see upside to the stock, which currently trades at 9.0x EV/F15e MS Adj EBITDA and 17.9x F15e P/E (MS Adjusted). Our PT of $31 implies 9.9x EBITDA and P/E of 21.3x which we see as reasonable given the company's momentum.” Aramark closed on Wednesday at $26.10.