UniFirst Shares Downgraded On Recent Stock Rally

NEW YORK (AP) — An analyst Monday downgraded shares of UniFirst Corp., which supplies uniforms and protective clothing, after a recent dramatic gain in value.

R.W. Baird analyst Andrea E. Wirth downgraded the shares, which have risen 69 percent since March 9, to "Outperform" from "Neutral."

Wirth took the same action for UniFirst peer Cintas Corp. stock, saying the facilities services sector generally tends to outperform well in advance of a bottom in fundamentals.

"While we do not yet think we are near a bottom in employment, the stocks have already seen returns in excess of what is typically seen in a cycle and believe now may be a good time to take profits," she wrote in a client note.

The analyst also wrote that the recovery from the current downturn "will be substantially more difficult than past cycles."

For the three months ended Feb. 28, the Wilmington, Mass.-based company's profit rose to $18.3 million, or 94 cents per share, from $15.3 million, or 79 cents per share last year.

In late morning trading, shares fell 53 cents to $33.62.