In a report released yesterday, Toni Kaplan from Morgan Stanley maintained a Hold rating on Cintas, with a price target of $220.00.
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Toni Kaplan has given his Hold rating due to a combination of factors related to Cintas’s recent financial performance and market positioning. The company’s organic growth exceeded expectations, with a 7.8% increase that surpassed both Morgan Stanley estimates and consensus figures. However, despite this positive growth, the earnings per share were largely in line with projections, showing only a slight improvement over consensus expectations.
Kaplan maintains a price target of $220, which suggests limited upside potential given the current valuation. The price-to-earnings ratio for Cintas is at the higher end of its peer group in the Diversified Business Services sector. Additionally, Kaplan expresses a preference for other companies within the sector, such as WCN and KLC, which are perceived as offering more defensive characteristics or greater potential for growth. These considerations contribute to the decision to rate Cintas with a Hold.
Kaplan covers the Financial sector, focusing on stocks such as Moody’s, S&P Global, and Factset Research. According to TipRanks, Kaplan has an average return of 2.4% and a 55.73% success rate on recommended stocks.
In another report released yesterday, RBC Capital also maintained a Hold rating on the stock with a $206.00 price target.