Cintas downgraded to Sell at Citi, sees stock priced for perfect execution

Citi analyst Leo Carrington downgraded Cintas to Sell from Neutral with a price target of $570, up from $530. Thanks to an improved U.S. macroeconomic outlook and better-than-expected earnings growth driven significantly by margin expansion, Cintas stock has re-rated to now a 43-times earnings multiple, which is “well above any multiple in its history” and screens as expensive across peers, the analyst tells investors in a research note. At these levels however, the stock looks priced for perfect execution, economic growth, and insulation from exogenous or idiosyncratic shocks, the firm added.