Aramark price target lowered to $35 from $47 at BofA

BofA lowered the firm’s price target on Aramark (ARMK) to $35 from $47 and keeps a Buy rating on the shares as the firm adjusted its target to reflect the spin-off of its uniforms business, Vestis (VSTS). As a leading provider of concessions at professional sports stadiums, the Major League Baseball playoffs have in the past been up to 100 basis point and 50 basis point year-over-year swing factors for Aramark’s U.S. Food & Facilities segment and total company quarterly organic revenues, respectively, the analyst tells investors. At a minimum, Aramark will host four playoff games, but assuming the “optimal scenario” where Houston or Toronto play Philadelphia in the World Series, Aramark could host up to 31 games, versus 20 games last year, the analyst calculated.