UniFirst downgraded to Neutral from Outperform at Baird

Baird downgraded UniFirst to Neutral from Outperform with an unchanged price target of $185. The analyst believes the stock’s upside catalyst slate “appears extended in time” as the company’s core rental segment has now posted several consecutive lackluster margin quarters, with growth rates now moderating. Revenue growth is typically the most important long-term metric in uniform rental. UniFirst shares remain intrinsically undervalued, but Baird fails to see this changing until a margin uptrend more clearly materialize, the analyst tells investors in a research note.