Citigroup Maintains Hold On Cintas

Citigroup has published a research report on Cintas Corporation CTAS after the company reported a mixed quarter causing Citi to maintain its Hold rating. In the report, Citigroup writes "CTAS delivered a mixed quarter, with above-expectation revenues but weaker margins and EPS that was in-line with consensus. In keeping with the extremely late-cycle nature of the company and its small-business client base, CTAS fundamentals are stabilizing only now and we would not really expect a robust near-term recovery. Indeed, CTAS kept its outlook unchanged. Our cautious stance on CTAS remains – within commercial services, we would prefer a stock like IRM in the near-term, due to its clearly improving shareholder-return and cash flow characteristics." Citigroup also maintains its $29 price target on Cintas Corporation, which closed yesterday at $29.20.