12:13 PM EST, 03/08/2024 (MT Newswires) -- Cintas ( CTAS ) is expected to see solid momentum in fiscal Q3 backed by growth in cross-selling and new sales, RBC Capital Markets said in a note.

"We expect digital initiatives, operating leverage, and lower fuel prices to help offset other inflationary headwinds and tough competition," the firm added.

RBC expects Cintas ( CTAS ) to make tuck-in acquisitions in the future and said the company's digital transformation, revenue growth and operational improvements will continue to drive margin expansion and incrementals.

The investment firm said pricing will remain a key driver for growth and the company will also benefit from diversified revenues coming from hygiene, mats, mops, restroom supplies, fire and first aid, RBC said.

RBC raised the price target on Cintas ( CTAS ) to $675 from $645 and maintained its outperform rating.

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