Citi analyst Leo Carrington upgraded Aramark to Buy from Neutral with a price target of $47, up from $45. With the stock down 6% in the last month, Aramark’s valuation is attractive and the upcoming Uniforms spinoff event is a potentially positive catalyst, the analyst tells investors in a research note. Although execution risk remains in the context of the Uniforms separation and the “impressive rate” of new contract growth acting as a near-term margin drag, offsetting this is that the inflationary environment seems on the cusp of inflecting into favorable territory for Aramark, contends Citi.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See the top stocks recommended by analysts >>
Read More on ARMK: