Cintas Corp. (CTAS) Given a $87.00 Price Target by Morgan Stanley Analysts
Cintas Corp. (NASDAQ:CTAS) received a $87.00 target price from equities researchers at Morgan Stanley in a research note issued on Wednesday. The firm currently has a a “sell” rating on the stock. Morgan Stanley’s target price suggests a potential downside of 23.30% from the stock’s current price.
The analysts wrote, “We stay UW as we still see the risk-reward for the stock skewed to the downside, but raise our price target to $87 (from $80) based on the strong 1Q results and expectations for an enhanced margin profile. What’s new: CTAS’ 1Q EPS of $1.26 beat MSe of $1.12 (cons $1.09), though excluding the benefit from a newly adopted accounting rule and one-time G&K related transaction costs, EPS of $1.14 only modestly beat our forecast. Revenue of $1.29B was in line with our estimate (cons $1.28B), as organic growth of 5.9% in Uniform Rental (MSe 5.4%) was offset by 5.4% organic growth in First Aid (MSe 9.4%). Margin expansion within Uniform Rental was notably strong with 90 bps of y/y expansion to 18.5% (MSe 17.8%). Operating margins at both First Aid and Safety (9.2% vs. MSe 10.9%) and All Other (6.0% vs. MSe 6.9%) both were below our forecast. Due to the aforementioned accounting benefit related to Accounting Standards Update 2016-09, Cintas’ effective tax rate in 1Q was 28.4% vs. MSe 36.0%.””
A number of other research firms also recently issued reports on CTAS. Macquarie assumed coverage on shares of Cintas Corp. in a research report on Thursday, August 25th. They set a “neutral” rating and a $130.00 target price for the company. Nomura restated a “buy” rating and set a $135.00 target price (up from $124.00) on shares of Cintas Corp. in a research report on Thursday, August 25th. Zacks Investment Research downgraded shares of Cintas Corp. from a “hold” rating to a “sell” rating in a research report on Tuesday, September 20th. KeyCorp boosted their target price on shares of Cintas Corp. from $110.00 to $130.00 and gave the company an “overweight” rating in a research report on Wednesday, August 17th. Finally, Robert W. Baird upgraded shares of Cintas Corp. from a “neutral” rating to an “outperform” rating and boosted their target price for the company from $111.00 to $140.00 in a research report on Wednesday, August 17th. One analyst has rated the stock with a sell rating, six have assigned a hold rating and four have issued a buy rating to the company. Cintas Corp. presently has a consensus rating of “Hold” and an average target price of $116.10.
Shares of Cintas Corp. (NASDAQ:CTAS) traded up 2.40% on Wednesday, hitting $116.15. The stock had a trading volume of 1,308,912 shares. The firm’s 50-day moving average price is $113.99 and its 200 day moving average price is $99.48. The firm has a market cap of $12.10 billion, a P/E ratio of 18.61 and a beta of 0.85. Cintas Corp. has a 12 month low of $80.00 and a 12 month high of $119.94.
Cintas Corp. (NASDAQ:CTAS) last posted its quarterly earnings data on Tuesday, September 27th. The company reported $1.26 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.08 by $0.18. Cintas Corp. had a net margin of 14.14% and a return on equity of 24.16%. The business earned $1.29 billion during the quarter. During the same quarter in the previous year, the firm posted $0.93 earnings per share. The company’s quarterly revenue was up 7.6% on a year-over-year basis. Analysts anticipate that Cintas Corp. will post $4.42 EPS for the current fiscal year.
In related news, Director Gerald S. Adolph sold 2,000 shares of the company’s stock in a transaction dated Monday, July 25th. The shares were sold at an average price of $108.12, for a total transaction of $216,240.00. Following the completion of the sale, the director now owns 11,590 shares of the company’s stock, valued at approximately $1,253,110.80. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Corporate insiders own 19.10% of the company’s stock.
A number of hedge funds have recently made changes to their positions in the stock. BlackRock Fund Advisors boosted its stake in shares of Cintas Corp. by 67.3% in the second quarter. BlackRock Fund Advisors now owns 2,298,352 shares of the company’s stock valued at $225,537,000 after buying an additional 924,422 shares in the last quarter. BlackRock Institutional Trust Company N.A. raised its position in Cintas Corp. by 19.7% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 2,926,414 shares of the company’s stock valued at $262,821,000 after buying an additional 480,916 shares during the last quarter. Wellington Management Group LLP purchased a new position in Cintas Corp. during the first quarter valued at $35,390,000. Bristol Gate Capital Partners Inc. purchased a new position in Cintas Corp. during the second quarter valued at $27,736,000. Finally, AXA raised its position in Cintas Corp. by 214.6% in the first quarter. AXA now owns 402,920 shares of the company’s stock valued at $36,186,000 after buying an additional 274,850 shares during the last quarter. 65.78% of the stock is owned by institutional investors.
About Cintas Corp.
Cintas Corporation is a provider of corporate identity uniforms through rental and sales programs, as well as a provider of related business services, including entrance mats, restroom cleaning services and supplies, carpet and tile cleaning services, first aid and safety services and fire protection products and services.
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