Cintas: UBS Maintains Buy Rating, Raises PT to $255 from $240.

Cintas: UBS Maintains Buy Rating, Raises PT to $255 from $240.

July 2, 2025

UBS has adjusted its price target for Cintas (CTAS, Financial), raising it from $240 to $255 while maintaining a Buy rating on the company's stock. This upward revision reflects a positive outlook on Cintas's future performance, according to the investment bank [1].

The latest move by UBS comes amidst strong financial results reported by Cintas. In its fourth-quarter earnings, Cintas saw revenue grow by 8% to $2.67 billion, with an organic growth rate of 9%. The company also achieved record full-year revenue of $10.34 billion, marking a 7.7% increase. Operating margins for the full year reached an all-time high of 22.8%, up from 21.6% the previous year [1].

Additionally, UBS analysts forecast an average target price of $219.31 for Cintas, with a high estimate of $257.00 and a low estimate of $163.00. The consensus brokerage recommendation is currently 2.6, indicating a "Hold" status. GuruFocus estimates the GF Value for Cintas in one year to be $162.79, suggesting a downside of 26.64% from the current price of $221.92 [1].

Cintas' strong performance is attributed to its diverse business segments, including uniform rental and facility services, first aid and safety, and all other segments. The company expects revenue to reach $11 billion to $11.15 billion in fiscal year 2026, with diluted EPS guidance of $4.71 to $4.85 [1].

However, Cintas faces challenges such as decreased incremental margins and uncertainties in the macroeconomic environment. The company also anticipates continued investment in SAP for its fire business and does not expect the spike in training revenue in the first aid business to continue at the same levels [1].

In summary, UBS's positive outlook on Cintas, coupled with the company's strong financial performance, suggests that investors may find the stock attractive. However, the company's challenges and uncertainties should be carefully considered before making investment decisions.

References:

[1] https://www.gurufocus.com/news/2987629/cintas-ctas-sees-price-target-increase-by-ubs-ctas-stock-news