William Blair analyst Tim Mulrooney has maintained their neutral stance on UNF stock, giving a Hold rating on March 25.
Tim Mulrooney’s rating is based on a combination of factors that reflect both positive and cautious elements in UniFirst’s performance. The company’s revenue showed a modest growth of 1.9% year-over-year, aligning closely with market expectations, and its adjusted EBITDA increased by 4%, although slightly below the consensus. Additionally, the adjusted EPS surpassed expectations, indicating some positive operational efficiency.
However, the management’s decision to lower the revenue outlook by $5.5 million at the midpoint, due to foreign-exchange challenges, particularly with the Canadian dollar, introduces a note of caution. Despite this, the fiscal 2025 adjusted EPS guidance was raised, suggesting confidence in future earnings, yet the overall mixed signals from revenue and foreign-exchange impacts justify a Hold rating. This balanced view reflects the need for investors to consider both the encouraging trends in core operations and the external challenges faced by the company.
In another report released on March 25, UBS also maintained a Hold rating on the stock with a $194.00 price target.