Zacks Investment Research upgraded shares of Cintas Corporation (CTAS) from NEUTRAL to OUTPERFORM on October 17, 2014, with a target price of $82.00.
We are changing our recommendation on Cintas from Neutral to Outperform largely on the back of positive earnings estimate revisions. Cintas reported solid fiscal 2015 first quarter results with nearly 26% year-over-year increase in earnings, surpassing the Zacks Consensus Estimate by $0.02. The company is witnessing strong growth across major segments, and is looking to build on this momentum, as it increasingly focuses on fast-growing rental first aid and direct sale businesses. Cintas also enjoys significant scale advantages with regard to its route-based network, which in turn boosts its competitiveness. In addition, its new partnership with Shred-it International's shareholders is expected to reap synergistic benefits in the long run. However, intense competitive pressure and foreign currency risks might peg back its profitability to some extent.
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