Aramark initiated with a Buy at Truist

Truist analyst Jasper Bibb initiated coverage of Aramark with a Buy rating and $33 price target. The company is approaching an inflection point with potential upside to FY24/FY25 operating income margin consensus driven by operational improvements, G&A leverage and moderating input cost inflation, the analyst tells investors in a research note. The firm adds that the 11% discount valuation on Aramark shares relative to primary foodservice competitors should close as the performance gap narrows.