Cintas' UniFirst Acquisition Accretive to Company's EPS by 10% by Year-Four, UBS Says

MT Newswires Live03-12

Cintas' (CTAS) deal to acquire UniFirst (UNF) is estimated to be accretive to Cintas' earnings per share, versus the standalone company, by about 10% by year-four, considering the expected customer churn, cost synergies, and debt paydown, UBS said in a Wednesday note.

With Cintas expecting to more than double UniFirst's earnings before interest, taxes, depreciation and amortization by the end of the four-year integration, UBS said that this "numerically" provides Cintas pathway to 10% or more EBITDA compound annual growth rate over the next four years.

UBS further said that at a high-level, the acquisition will increase Cintas' revenue by about 20%.

UBS maintained its buy rating on Cintas with a $235 price target.

Price: 198.13, Change: -0.21, Percent Change: -0.11

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment