UBS analyst Joshua Chan maintained a Buy rating on ARAMARK Holdings today and set a price target of $45.00.
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Joshua Chan has given his Buy rating due to a combination of factors that suggest potential growth for ARAMARK Holdings. Despite recent revenue shortfalls, the company has maintained its commitment to achieving an organic growth rate of over 8% by the end of the fiscal year. This target, if met, would indicate a positive trajectory, although there are concerns about the company’s ability to meet its future earnings and margin expectations due to startup costs.
Additionally, ARAMARK’s potential for securing large contracts could position it for future growth, even if these wins have not yet been publicly confirmed. The company’s growth outlook into 2026 remains promising, with expectations of high-single-digit organic growth. This outlook is supported by anticipated pricing strategies and net new growth, which could provide a solid foundation for the company’s long-term performance, justifying the Buy rating.
Based on the recent corporate insider activity of 119 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ARMK in relation to earlier this year.