Aramark assumed with Outperform from Sector Perform at RBC Capital

RBC Capital upgraded Aramark to Outperform from Sector Perform with a price target of $42.50, up from $36, after assuming coverage of the name. Post the Vestis spinoff, Aramark has “multiple levers” to drive shareholder value, including imminent buybacks, the analyst tells investors in a research note. The firm thinks the company is now better positioned versus its larger peers than headline scale comparisons might suggest. A sustained step change in net new business wins, enhanced by pricing and volume growth, should support 5%-7% organic sales growth in the near term, contends RBC.