Bernstein upgrades Aramark to Outperform, raises price target to $49

As previously reported, Bernstein analyst Harry Martin upgraded Aramark to Outperform from Market Perform with a price target of $49, up from $38. The firm sees the uncertainties of the investment story beginning to clear, with near-term margin inflection set to surprise to the upside. After the proposed spinoff of the uniform services business is completed, Bernstein sees a meaningful rerating potential for a business that is offering a compounding earnings story with faster sustainable growth versus historical levels which the market is yet to give credit for.