Vestis initiated with an Outperform at Baird

Baird analyst Andrew Wittmann initiated coverage of Vestis with an Outperform rating and $24 price target. The analyst says uniform rental businesses offer high value at a low cost, with scale players structurally advantaged versus the competition. The firm believes Vestis “has been under-managed and under-invested during Aramark’s ownership with new management energized with a thoughtful plan in early stages.” It sees the ability to drive mid-teens-plus earnings growth, given a structural margin opportunity.