William Blair analyst Tim Mulrooney has maintained their neutral stance on VSTS stock, giving a Hold rating on July 31.
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Tim Mulrooney’s rating is based on several factors, including the recent fiscal third-quarter results of Vestis Corporation, which aligned with market expectations but were considered a transitional phase for the company. The new management is still in the process of understanding and stabilizing the business, leading to uncertainty about the company’s future strategic direction and financial performance.
Additionally, the company’s top-line performance was at the lower end of its guidance range, and while the adjusted EBITDA was in line with consensus, there were notable adjustments that impacted the margin. The absence of guidance for the fourth quarter further adds to the uncertainty. Given these factors, along with a net leverage ratio that is approaching its credit agreement limit, the risk and reward appear balanced, justifying the Hold rating.
In another report released on July 31, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $6.50 price target.
Based on the recent corporate insider activity of 94 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of VSTS in relation to earlier this year.