The Analyst Landscape: 9 Takes On Aramark

Analysts' ratings for Aramark ARMK over the last quarter vary from bullish to bearish, as provided by 9 analysts.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 3 3 3 0 0
Last 30D 0 1 1 0 0
1M Ago 0 0 0 0 0
2M Ago 2 1 2 0 0
3M Ago 1 1 0 0 0

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $38.78, a high estimate of $41.00, and a low estimate of $36.00. Surpassing the previous average price target of $35.78, the current average has increased by 8.38%.

price target chart

Interpreting Analyst Ratings: A Closer Look

In examining recent analyst actions, we gain insights into how financial experts perceive Aramark. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Andrew Steinerman JP Morgan Raises Overweight $41.00 $39.00
Toni Kaplan Morgan Stanley Raises Equal-Weight $38.00 $35.00
Gary Bisbee B of A Securities Raises Buy $39.00 $36.00
Andrew Steinerman JP Morgan Raises Overweight $39.00 $35.00
Faiza Alwy Deutsche Bank Raises Buy $39.00 $36.00
Andrew Wittmann Baird Raises Neutral $38.00 $37.00
Ashish Sabadra RBC Capital Raises Sector Perform $36.00 $33.00
Joshua Chan UBS Raises Buy $40.00 $35.00
Ian Zaffino Oppenheimer Raises Outperform $39.00 $36.00

Key Insights:

  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Aramark. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Aramark compared to the broader market.
  • Price Targets: Gaining insights, analysts provide estimates for the future value of Aramark's stock. This comparison reveals trends in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Aramark's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Aramark analyst ratings.

About Aramark

Aramark provides food, facilities, and uniform services to a variety of clients and institutions. The majority of company revenue comes from its North American food and support services segment. Smaller but substantial segments include food and support services international, food and support services united states and uniform and career apparel. The food and support services segments provide food for school districts; colleges; healthcare facilities; correctional institutions; and business, sports, and entertainment venues. The uniform segment rents, delivers, cleans, and maintains work clothes and ancillary items like towels and mats to customers in North America and Japan. The company has hundreds of service locations and distribution centers across the United States and Canada.

Aramark: Financial Performance Dissected

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Aramark displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 7.97%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Net Margin: Aramark's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 1.33%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Aramark's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 1.99%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Aramark's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.46%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Aramark's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 2.13.

The Basics of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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