JP Morgan Maintains Neutral Rating on UniFirst

JP Morgan is maintaining its Neutral rating on shares of UniFirst Corp. UNF. “Wednesday morning, UNF reported 3QF11 (May) EPS of $0.93, well above our estimate of $0.86,” JP Morgan writes. “The solid performance was driven by accelerating revenues in the Core Laundry segment. “Overall, we think UNF continues to gain market share as some competitors cut back on sales resources during the recession. Over the intermediate term, we expect revenue growth to decelerate to a still healthy mid-single-digit level. Near term, we think EPS upside would come from revenue growth as UNF will continue to see margin headwinds from higher merchandise, energy, and input costs.” UniFirst closed Wednesday at $54.50.