Aramark upgraded to Buy from Neutral at UBS

UBS analyst Joshua Chan upgraded Aramark to Buy from Neutral with an unchanged price target of $43. With moderating food inflation and continued pricing traction, Aramark is approaching a “margin inflection” in fiscal Q4 with average gross margin expansion potential of nearly 200 basis points year-over-year over the next four quarters, the analyst tells investors in a research note. The firm says fully achieving this would result in upside to Street estimates. UBS believes the stock’s 15% pullback over the past month creates an “attractive opportunity.”