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Cintas Corporation: Strong Financial Performance and Strategic Guidance Justify Buy Rating Despite Margin Concerns

Cintas Corporation: Strong Financial Performance and Strategic Guidance Justify Buy Rating Despite Margin Concerns

William Blair analyst Tim Mulrooney has maintained their bullish stance on CTAS stock, giving a Buy rating on September 17.

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Tim Mulrooney has given his Buy rating due to a combination of factors including Cintas’s strong financial performance and strategic guidance. The company’s revenue for the fiscal first quarter of 2026 was $2.72 billion, which exceeded the consensus estimate and demonstrated robust organic growth. Additionally, Cintas’s EBITDA increased by 9.2%, aligning with market expectations, and the company slightly surpassed EPS consensus estimates.
Despite some concerns about incremental operating margins falling short of expectations, Cintas raised its full-year revenue and adjusted EPS guidance, reflecting confidence in its ongoing growth trajectory. The company’s balance sheet remains solid with a manageable net-debt leverage ratio. Although there are potential risks such as macroeconomic shifts and labor market challenges, the valuation of Cintas’s shares is consistent with historical averages, supporting the Buy recommendation.

In another report released on September 17, UBS also maintained a Buy rating on the stock with a $255.00 price target.

Based on the recent corporate insider activity of 25 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CTAS in relation to earlier this year.

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