Bernstein reiterates Cintas stock rating ahead of earnings

Investing.com reports that Bernstein SocGen Group has maintained a Market Perform rating on Cintas (CTAS) stock, setting a $200.00 price target prior to the company's fiscal first-quarter earnings. The earnings are expected on September 23rd. Bernstein anticipates a margin expansion of 100 basis points, outpacing the 60 basis point consensus estimate.

The firm notes Cintas' strong performance over the past year, with gross profit margins at 51%. The extra day in the current quarter is expected to contribute to a 60 to 80 basis point margin boost. Despite this, Bernstein does not foresee a guidance increase for fiscal 2027. The stock is evaluated as overvalued, based on InvestingPro's Fair Value estimate.

Cintas recently met and exceeded analyst expectations with adjusted earnings per share of $1.29 and revenue of $2.91 billion in Q4. BofA Securities upgraded Cintas to Buy and increased the price target to $230, while UBS did the same at $230, citing organic growth acceleration. Stifel kept a Hold rating, acknowledging positive growth momentum across segments.