Cintas (CTAS) is expected to post strong fiscal Q1 growth, raise its fiscal 2027 outlook, maintain healthy margins and benefit from demand in healthcare, safety and other key markets, while its UniFirst (UNF) deal remains on track to close around year-end, RBC Capital Markets said in a note emailed Thursday.
RBC expects fiscal Q1 revenue to rise 9.9% to $2.99 billion, including 8.3% organic growth, while earnings per share are seen at $1.39 compared with consensus estimates of $2.98 billion in revenue and EPS of $1.34.
The investment firm said it expects Cintas to raise its fiscal 2027 revenue outlook to between $12.15 billion and $12.27 billion, from the current $12.10 billion to $12.25 billion range, and lift adjusted EPS guidance to $5.40 to $5.55 from $5.36 to $5.50.
RBC expects margins to benefit from easier comparisons in H1 and solid execution, though higher fuel costs could create some pressure.
RBC kept its sector perform rating on the stock with $206 price target.
Price: $204.18, Change: $-1.60, Percent Change: -0.78%