Cintas stock target raised on strong quarter

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Cintas stock target raised on strong quarter

On Thursday, Baird increased its price target for Cintas Corporation (NASDAQ: CTAS ) to $750.00, up from the previous target of $660.00, while keeping an Outperform rating on the stock. The firm's decision follows Cintas' recent financial performance, which exceeded market expectations, showcasing another quarter of strong results.

Cintas' shares experienced a surge as the company reported a quarter that not only beat expectations but also raised its forecast. This was achieved despite the company facing a roughly $0.11 per share impact from an unforeseen legal settlement. This indicates that the underlying margin performance of the company was notably strong.

The positive financial results were widespread across the company's operations. Cintas' continued investment in growth and efficiency has begun to yield dividends. The analyst noted that the company's free cash flow (FCF) has seen a significant increase, which has facilitated a rise in dividends, consistent stock buybacks, ongoing organic investments, and an increase in bolt-on mergers and acquisitions that are expected to be accretive to earnings.

The company's robust gross margin gains and consistent high single-digit organic growth were particularly highlighted. The analyst from Baird expressed a favorable view of the company's trajectory, stating, "we like where the company is" and encouraged long-term investors seeking quality growth to maintain buying positions in the stock.

InvestingPro Insights

As Baird raises its price target for Cintas Corporation, the InvestingPro data and tips provide additional insights into the company's financial health and stock performance. With a Market Cap of $69.5B and a P/E Ratio standing at 43.71, Cintas has shown a strong financial performance. The company's revenue has grown by 9.34% over the last twelve months as of Q3 2024, with an even higher quarterly growth rate of 9.87%. This growth is underpinned by a robust Gross Profit Margin of 48.46%, indicating efficient operations and cost control.

InvestingPro Tips suggest that Cintas has a perfect Piotroski Score of 9, reflecting high-quality business operations, and analysts have revised their earnings upwards for the upcoming period, signaling continued optimism about the company's financial future. Additionally, Cintas has maintained dividend payments for 32 consecutive years, demonstrating a commitment to rewarding shareholders consistently.

For investors looking to delve deeper into Cintas' financials and stock performance, InvestingPro offers additional tips. There are 21 more InvestingPro Tips available that can provide further guidance on the company's valuation multiples, profitability, and stock price trends. To access these insights and optimize investment strategies, consider using the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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