Deutsche Bank analysts provided their outlook on Cintas Corporation (NASDAQ:CTAS) ahead of the company’s Q2 earnings, scheduled to be reported on Dec 21.
Following the strong stock price outperformance over the last three months, the analysts see implicit expectations as elevated into the print next week, with another “beat and raise” anticipated. The analysts are modeling over 10% organic growth for fiscal Q2/23, a deceleration from the Q1/23 level of 13.9% amidst tougher comps and a slowdown in year-over-year labor growth.
Acknowledging that there is some uncertainty with respect to the overall macro environment later in 2023, the analysts don’t expect to hear of any slowing on the ground. The analysts raised their price target to $490 from $465 while reiterating their Buy rating.