CTAS Well Positioned To Pursue Acquisitions
Analysts at Northcoast Research reiterate their “buy” rating on Cintas (NASDAQ: CTAS).The target price for CTAS is set to $32.
Cintas has reported its quarterly earnings ahead of expectations. The trends in Q3 2010 indicate stable revenues on a same work day basis and a marginally better-than-expected operational performance, the analysts say. CTAS has indicated that business conditions continue to be fairly stable and that it expects gradual revenue growth in the upcoming quarters, boosted by gradual economic and employment improvements.
CTAS has projected its revenue and EPS for Q4 2010 at $870-$890 million and $0.30-$0.34, respectively. Cintas’ financial health continues to be robust, with strong cash flow. This, along with CTAS’ minimal debt levels, offers the company a strong position to pursue strategic acquisitions for long-term returns.
