Aramark should be bought amid expense reversal ‘misunderstanding,’ says Stifel

Stifel analyst Shlomo Rosenbaum believes operational trends in Aramark’s business remain strong and believes the 12.5% stock price decline today is due to a misunderstanding about an expense reversal. The company reversed a roughly $30M contingent liability related to an acquisition earn out and Stifel thinks investors are "under the misconception" that this boosted adjusted operating income such that the $242M reported should really be $212M, but the firm believes "this is a mistake." The firm, which recommends buying on the weakness as it contends "this mistake should get cleared up," keeps a Buy rating and $45 price target on Aramark shares.