J.P. Morgan Neutral On Cintas (CTAS)

J.P. Morgan Chase & Co. has a Neutral rating and a $30 price target on shares of Cintas CTAS. In a note to investors, J.P. Morgan writes, "Cintas' rental organic revenues grew 4.3% y/y in 3QF11 (Feb), accelerating from 1.9% y/y in 2QF11. Organic revenues accelerated in all segments, resulting in a healthy 5.5% y/y total organic growth. The improvement was driven by increasing new business, slightly better add/stops, and less lost business. Management also noted better sales productivity and higher client retention. Although rental organic growth continues to be modest, we believe that growth will continue to accelerate in 4QF11 and gradually move closer to normal seasonal trends through FY2012." Shares of CTAS are up $1.60 in pre-market trading to $29.74, a gain of 5.7%.