Truist Cuts Cintas (CTAS) Price Target but Stays Bullish on UniFirst Acquisition

Cintas Corporation (NASDAQ:CTAS) is included among the Dividend Stock Portfolio: Top 10 Stocks to Buy According to Reddit.

Truist Cuts Cintas (CTAS) Price Target but Stays Bullish on UniFirst Acquisition

On June 15, Truist lowered its price recommendation on Cintas Corporation (NASDAQ:CTAS) to $225 from $255. It reiterated a Buy rating on the stock. In a research note, the analyst said Cintas reaffirmed its expectation that the UniFirst transaction will close in the second half of 2026. Even so, the shares edged lower on Friday. Truist noted that the lower price target reflects the continued overhang on the stock. The firm still sees strong strategic value in the proposed acquisition and remains positive on the deal.

During its fiscal third-quarter 2026 earnings call, Cintas said it expects fiscal 2026 revenue to be between $11.21 billion and $11.24 billion. That represents a total growth of 8.4% to 8.7%. The company also forecast adjusted diluted earnings per share of $4.86 to $4.90, which would reflect growth of 10.5% to 11.4%.

Management said the adjusted EPS guidance excludes one-time transaction-related costs tied to the UniFirst acquisition. These expenses are expected to reduce fiscal 2026 diluted EPS by about $0.03 to $0.04. Chief Financial Officer Garula stated that the transaction-related expenses are expected to occur in the fourth quarter and are not expected to materially affect third-quarter results.

The company said its guidance is based on constant foreign exchange rates. It also assumes net interest expense of roughly $101 million and an effective tax rate of 20%.

Cintas Corporation (NASDAQ:CTAS) provides corporate identity uniforms through rental and direct sales programs. The company also offers a range of related business services, serving organizations of all sizes across the United States, Canada, and Latin America.

While we acknowledge the risk and potential of CTAS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CTAS and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 12 Stocks From Companies Generating High Cash Flow and 12 Stocks with Highest Dividend to Invest In Now

Disclosure: None. Follow Insider Monkey on Google News.

1281292 - 11759070 - 1