$Aramark(ARMK-W)$ (ARMK) seems to be on track for another year of strong net new wins and client retention, although management left its fiscal 2026 guidance unchanged after fiscal Q1 margins missed estimates due to a calendar shift, Morgan Stanley said in a note emailed Wednesday.

The brokerage said the company is off to a strong start, having achieved an organic revenue beat and a record-high retention rate in fiscal Q1, which signals consistency or improvement compared with fiscal 2025.

The company reported new wins in Q1, with the UPenn healthcare servicing contract commencing in early February and the RWJBarnabas contract scheduled to begin in June, while its international operations posted more than 100 new core account wins, according to the note.

The brokerage said its adjusted operating income estimates for fiscal years 2026 and 2027 remain largely unchanged.

Morgan Stanley raised its price target to $45 from $44, and maintained its equal-weight rating on the stock.

Shares of Aramark were up more than 2% in recent trading Wednesday.

Price: 41.89, Change: +0.93, Percent Change: +2.27