Low Fuel Costs Helped Cintas Corp. (CTAS) to a 2Q Beat; Piper Jaffray Raised Price target to $95

Piper Jaffray reiterated a Neutral rating on Cintas (NASDAQ: CTAS), and raised the price target to $95.00 (from $88.00), following the company's 2Q16 earnings report. F2Q results came in modestly ahead of expectations driven by lower fuel costs and upside in first aid and safety revenue growth. EPS of $1.03 beat the Street's $1.00 estimate. Management changed its F2016 adjusted EPS guidance range from $3.79 - $3.88 to $3.83 - $3.90.

Analyst George Tong commented, "Cintas reported solid F2Q results with modest outperformance on revenue and margins vs our expectations. We find growth in the company's core uniform rental business is healthy, supported by re-investments into the business and increased client penetration, and see first aid and safety as a source of upside to growth. Leverage from route efficiency can drive attractive margin leverage when add-stops gain further momentum in our view, likely a F2017 event. We maintain our Neutral rating on relatively fair current valuation."

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 $89.21 yesterday.

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