UPDATE: Bank Of America Reiterates On Cintas On Positive 4Q Trends, Muted FY15 Outlook

In a report published Wednesday, Bank of America analyst Sara Gubins reiterated an Underperform rating on

, and raised the price target from $54.00 to $59.00. In the report, Bank of America noted, “We argue CTAS shares reflect the cyclical recovery from an improving US labor market. Rising costs, such as cotton for uniforms and diesel fuel for trucks, present downside risks to estimates. CTAS shares may not regain historical valuation levels. EBITDA margins are now structurally lower, in our view. Revenue is shifting to lower-margin service lines as well. We argue future revenue growth is likely to fall short of historical averages.” Cintas closed on Tuesday at $62.85.