ARAMARK Holdings, the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Toni Kaplan from Morgan Stanley maintained a Hold rating on the stock and has a $43.00 price target.
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Toni Kaplan has given his Hold rating due to a combination of factors impacting ARAMARK Holdings. The company experienced a miss in organic revenue growth for the fourth quarter, falling short by approximately 200 basis points. Despite having a high retention rate and a strong year for net new business, the anticipated revenue from several contracts was deferred due to timing issues, affecting the overall financial performance.
Furthermore, the company’s margins were negatively impacted as they incurred costs ahead of servicing new contracts, leading to a miss in the Food Services and Support (FSS) US margin expectations. While there were some positive performances within certain segments, such as Business & Industry, the overall results were mixed. The guidance for 2026 was roughly in line with expectations, with revenue slightly above and operating income margins slightly below forecasts, leading to the decision to maintain a Hold rating.
In another report released on October 30, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $43.00 price target.