Cintas initiated with a Buy at Citi

Citi analyst Leo Carrington initiated coverage of Cintas with a Buy rating and $540 price target. Cintas is the leader in the "fragmented" workwear rental sector where the eight largest companies control less than 30% of the market, the analyst tells investors in a research note. Citi’s new indices of employment and pricing highlight Cintas’ "significant competitive advantage," contends the firm. It says the company provides a business-critical service in sectors where in-sourcing or having no-program is increasingly challenging.