Aramark's Data Center Opportunity Could be Larger than Expected, Oppenheimer Says

MT Newswires Live06-11 23:04

$Aramark(ARMK-W)$'s (ARMK) data center opportunity could be larger than expected while its core business appears to be hitting its stride, Oppenheimer said in a Thursday note.

The report said the company is ramping up its first data center win and should operate about 12 locations by the end of next year and 30 to 40 by the end of the following year.

The note said its base business appears to be gaining share, and food and labor inflation should not pose a problem to margins. It also said the firm could initiate an accelerated share buyback on an expected decline in its net leverage.

"Overall, the core business is performing well and the DC opportunity could be larger than expected," the report said.

Oppenheimer retained its outperform rating and increased its price target to $60 from $50.

Price: 54.02, Change: +0.72, Percent Change: +1.34

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