11:55 AM EDT, 03/27/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target to $620 from $550, 38.4x our FY 25 (May) EPS outlook (adjusted to $16.15 from $16.37; we lift FY 24's estimate to $14.90 from $14.65), above the company's five-year forward P/E multiple average. A beat on earnings and raised guidance is driving today's positive movement in share price. CTAS posted Feb-Q EPS of $3.84 vs. $3.18 (+22% Y/Y), $0.26 above consensus. Feb-Q sales were roughly in line with expectations, up 10% Y/Y (an increase of 8% on an organic basis). Margin performance drove earnings expansion during the quarter, with operating income margin widening by 120 bps to 21.6%. Profitability benefited from volume growth, technology improvements, and gains from investment into operational efficiencies. Investment into route optimization and plant equipment utilization are bearing fruit. Despite the solid quarter and our positive view of CTAS's execution on margins and sales expansion, we view valuation as extended, with a forward P/E of 40x at nearly double that of the S&P 500.