William Blair analyst Tim Mulrooney has maintained their bullish stance on CTAS stock, giving a Buy rating on December 5.
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Tim Mulrooney has given his Buy rating due to a combination of factors that point to both operational strength and continued growth potential for Cintas. The company posted quarterly revenue and organic growth that exceeded expectations, alongside EBITDA and incremental margins that were meaningfully above consensus, signaling strong underlying profitability. Earnings per share grew at a double-digit rate and modestly beat forecasts, while management’s decision to raise full‑year revenue and adjusted EPS guidance—both now slightly above Street estimates—underscores confidence in the business trajectory.
Additionally, Cintas generated robust free cash flow with a notable year-over-year increase and maintains a conservative balance sheet, reflected in low net leverage, which provides financial flexibility and reduces risk. From a valuation perspective, the stock trades at an enterprise-value-to-EBITDA multiple roughly in line with its multi‑year historical range, suggesting investors are not overpaying relative to the company’s long-term norms given its current performance. Mulrooney also anticipates a favorable near-term share reaction as the market absorbs the guidance revision and better‑than‑expected margins, while monitoring customer health and labor market trends, leading him to reaffirm a positive stance on the shares.
In another report released on December 5, Barclays also maintained a Buy rating on the stock with a $245.00 price target.