In a report released today, Andrew Wittmann from Robert W. Baird upgraded ARAMARK Holdings to a Buy, with a price target of $47.00.
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Andrew Wittmann has given his Buy rating due to a combination of factors that highlight ARAMARK Holdings’ potential for growth. Despite a recent reset in expectations following the F3Q25 report, Wittmann sees a long-term opportunity with ARAMARK. The company’s key performance indicators, such as increasing retention rates and consistent margin improvements, suggest a promising trajectory for earnings per share growth in the high-teens range. Additionally, ARAMARK’s efforts to reduce leverage and increase buybacks are expected to enhance return on invested capital.
Looking ahead, Wittmann notes that ARAMARK’s revenue guidance requires significant acceleration, but he believes this is achievable. The company has already recorded strong performance in July, and new business ventures, particularly in international markets and education sectors, are expected to contribute positively. Furthermore, ARAMARK’s strategic investments in technology and supply chain improvements are anticipated to drive future confidence. While the valuation is not inexpensive, the growth prospects and potential for a ramp-up in buybacks make ARAMARK an attractive buy at its current price level.
Wittmann covers the Industrials sector, focusing on stocks such as Tetra Tech, APi Group, and Aecom Technology. According to TipRanks, Wittmann has an average return of 15.3% and a 69.89% success rate on recommended stocks.
In another report released today, UBS also maintained a Buy rating on the stock with a $46.00 price target.