Aramark initiated with a Market Perform at Bernstein

Bernstein initiated coverage of Aramark with a Market Perform rating and $38 price target. The firm initiated coverage on European business services, preferring companies with "entrenched networks and moats," regulatory barriers, and the ability to sell new service offerings into existing relationships at very high marginal returns. These advantages are hard to come by, and the market generally undervalues them while giving too much credence to turnarounds, the analyst tells investors in a research note.