RBC Capital Downgrades Cintas (CTAS) to Sector Perform

RBC Capital analyst Ashish Sabadra downgraded Cintas (NASDAQ: CTAS) from Outperform to Sector Perform with a price target of $725.00.

The analyst comments: "Uniform Rental and Facility Services revenue growth could moderate with macro and employment growth slowdown. In addition, CTAS's weak job postings are also likely an early indicator for growth moderation. Growth slowdown could also likely moderate the pace of margin expansion. In addition, SAP implementation could weigh on the Fire margins, and we see First Aid gross margin expansion to moderate going forward. Despite the macro headwinds, the stock is trading at ~45x NTM PE, at a significant premium compared to the historical 5-year average of ~34x NTM P/E. Accordingly, we downgrade to Sector Perform."

For an analyst ratings summary and ratings history on Cintas click here. For more ratings news on Cintas click here.

Shares of Cintas closed at $721.76 yesterday.

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