Vestis Corporation (VSTS) Receives 'Hold' Rating from William Blair, 'Sell' Ratings from Barclays and JPMorgan

Vestis Corporation (VSTS) received a 'Hold' rating from William Blair and 'Sell' ratings from Barclays and JPMorgan, citing low Q3 revenue, impacted margins, new management, and high net leverage ratio. Despite this, VSTS is included in the list of 11 Best Single Digit Stocks to Buy According to Hedge Funds.

Vestis Corporation (VSTS) has recently seen mixed reactions from analysts, with William Blair reiterating a 'Hold' rating while Barclays and JPMorgan reaffirmed their 'Sell' ratings. Despite these ratings, VSTS remains on the list of the 11 Best Single Digit Stocks to Buy According to Hedge Funds [3].

William Blair, in a recent report, cited several factors for their 'Hold' rating. The investment firm noted that while the company's Q3 performance was in line with expectations, the top-line revenue was at the low end of guidance, and margins were significantly impacted by adjustments. Additionally, uncertainty stemming from new management, the absence of Q4 guidance, and a net leverage ratio close to the credit agreement limit contributed to their cautious stance [3].

Barclays and JPMorgan, on the other hand, maintained their 'Sell' ratings with price targets of $5.00 and $5.50, respectively. They echoed similar concerns regarding the company's financial performance and the uncertainties surrounding its future prospects [3].

Despite these negative signals, VSTS's inclusion in the list of the 11 Best Single Digit Stocks to Buy According to Hedge Funds suggests that some investors see potential in the company. However, the current market conditions and analysts' concerns may pose challenges to its stock price.

Investors should carefully consider the latest financial reports and analyst ratings before making investment decisions. The company's ability to navigate through current challenges and provide clear guidance for the future will be crucial in determining its stock's performance.

References:
[1] https://stockinvest.us/stock/VSTS
[2] https://www.globenewswire.com/news-release/2025/08/13/3133116/0/en/VESTIS-INVESTIGATION-ALERT-Bragar-Eagel-Squire-P-C-is-Investigating-Vestis-Corporation-on-Behalf-of-Long-Term-Stockholders-and-Encourages-Investors-to-Contact-the-Firm.html
[3] https://ca.finance.yahoo.com/news/william-blair-reiterates-hold-rating-040553331.html