Cintas’ macro headwinds look manageable, says RBC Capital

RBC Capital keeps an Outperform rating and $525 price target on Cintas (CTAS) after its Q1 earnings beat and guidance raise. Despite the results, the stock pulled back most likely because of macro concerns, but the digital transformation including SmartTruck, as well as new initiatives in partnership with SAP (SAP), Google (GOOGL), and Verizon (VZ), should help the company manage through the macro headwinds and drive margin expansion, the analyst tells investors in a research note.