Update (9:38 a.m.): Updated with Thursday market open information.
NEW YORK (TheStreet) -- Jefferies increased its price target on Cintas (CTAS - Get Report) to $70 and set a "buy" rating. The firm believes improved rental end-market hiring can be a boon to earnings.
The stock was up 0.32% to $62.38 at 9:37 a.m. on Thursday.
Separately, TheStreet Ratings team rates CINTAS CORP as a "buy" with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CINTAS CORP (CTAS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- CTAS's revenue growth has slightly outpaced the industry average of 3.8%. Since the same quarter one year prior, revenues slightly increased by 5.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The current debt-to-equity ratio, 0.58, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, CTAS has a quick ratio of 1.60, which demonstrates the ability of the company to cover short-term liquidity needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Services & Supplies industry and the overall market, CINTAS CORP's return on equity exceeds that of both the industry average and the S&P 500.
- 46.16% is the gross profit margin for CINTAS CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 7.48% is above that of the industry average.
- You can view the full analysis from the report here: CTAS Ratings Report