William Blair analyst Tim Mulrooney has maintained their neutral stance on UNF stock, giving a Hold rating on October 20.
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Tim Mulrooney has given his Hold rating due to a combination of factors impacting UniFirst’s financial outlook. Despite reporting solid fourth-quarter results, the company’s fiscal 2026 guidance fell short of investor expectations, particularly concerning organic growth and margin projections. The ongoing ERP implementation and associated costs, along with higher amortization expenses, are expected to weigh on the company’s financial performance.
Additionally, UniFirst is investing in its sales, service, and digital capabilities, which, while potentially beneficial in the long term, are likely to exert pressure on margins in the near term. The challenging pricing environment, negative net wearer levels, and potential tariff impacts further complicate the growth outlook. Until there is a clearer path to achieving mid-single-digit organic growth or the labor market shows sustainable improvement, the stock is expected to remain under pressure, justifying the Hold rating.
According to TipRanks, Mulrooney is a 4-star analyst with an average return of 10.5% and a 60.98% success rate. Mulrooney covers the Industrials sector, focusing on stocks such as WillScot Mobile Mini Holdings, EMCOR Group, and Brink’s Company.
In another report released on October 20, UBS also maintained a Hold rating on the stock with a $190.00 price target.