Aramark Growth Momentum Seen Extending Into Fiscal 2027, Truist Says

MT Newswires Live08-13

$Aramark(ARMK-W)$'s (ARMK) organic growth momentum should extend into fiscal 2027, supported by strong new business wins, record retention, and ramping data-center contracts under its Nexus platform, Truist Securities said in a note Wednesday.

The brokerage noted the company raised its fiscal 2026 organic revenue growth outlook to 9% to 10% from a prior range of the higher end of 7% to 9%, while keeping its adjusted operating income and EPS growth ranges unchanged.

Truist said the guidance was not raised further due to start-up costs from mobilizing new contracts and selling commissions tied to strong new business.

Truist noted new business wins of more than $1.6 billion year-to-date, up 51% year-over-year, with retention at 98%.

Truist maintained the company's buy rating with a price target of $70.

Price: 60.61, Change: +0.13, Percent Change: +0.22

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