Aramark upgraded to Buy from Hold at Deutsche Bank

Deutsche Bank upgraded Aramark to Buy from Hold with a price target of $39, up from $36. The analyst believes the company’s deleveraging should provide “strategic optionality.” By the end of next quarter, Aramark’s net leverage should be around 3.5-times, a level that is critical for likely valuation expansion over time, the analyst tells investors in a research note. The firm sees a “cleaner story” in fiscal 2025 and says Aramark has been executing well following COVID-related disruption and significant inflation that took some time to recover via pricing.