Stifel raised the firm’s price target on Aramark to $43 from $40 and keeps a Buy rating on the shares. Ahead of the company’s Q4 results, the firm is taking another look at its Q4 estimates and expectations for FY25. Stifel expects FY24 net new business to be in the upper half of the 4%-6% of FY23 revenue target, and the firm is projecting FY25 margin expansion of 39 basis points to 5.44%. The firm added that it expects the potential for improved capital returns to become more of the story over the next year, resulting in the valuation gap to Compass narrowing.
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