Cintas (CTAS) posted solid fiscal Q1 results amid "continued robust demand" from new and existing customers, prompting it to lift its full-year guidance, RBC Capital Markets said in a note Thursday.
On Wednesday, the uniform supplier raised its fiscal 2025 outlook after reporting stronger-than-expected fiscal Q1 results.
"Growth from [Cintas] key verticals, healthcare, hospital, education, and government, continued to be robust in 1Q," RBC analyst Ashish Sabadra said in the note. "We monitor for any slowdown in revenue growth with a softer labor environment and the sustainability of high incremental margins going forward."
Cintas' management said on a conference call that the company is not interested in acquiring Vestis (VSTS), "given the under-investment in the business," according to the note.
RBC raised its price target on the Cintas stock to $215 from $181 while maintaining its sector perform rating.
The company's shares were up 1.7% in recent Thursday trading.
Price: 210.82, Change: +3.60, Percent Change: +1.74
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