UPDATE: Bank of America Reiterates Underperform Rating, Raises PT on Cintas Corporation as Improving Trends are Reflected in Shares

In a report published Tuesday, Bank of America analyst Sara Gubins reiterated an Underperform rating on Cintas Corporation CTAS, and raised the price target from $59.00 to $60.00. In the report, Bank of America noted, “1QF15 (Aug) EPS of $0.93 (includes a $0.04 incremental shredding benefit) was $0.14 above our forecast and $0.18 above consensus. Excluding Document Storage and Imaging (now in discontinued operations), revenue was 2% above our estimate. Operating margins of 14.8% were 130bp above our estimate. Our FY15E EPS is up $0.13 to $3.27 to reflect the $0.04 shredding benefit and better underlying performance. In FY16, we forecast EPS of $3.62, as the Shred-It JV begins to benefit Cintas.” Cintas Corporation closed on Monday at $65.95.