Cintas price target raised to $215 from $181 at RBC Capital

RBC Capital raised the firm’s price target on Cintas to $215 from $181 but keeps a Sector Perform rating on the shares after its Q1 earnings beat. The company saw “solid” execution as its technology and operating efficiency initiatives delivered 38% incremental margins, with a lower tax rate also supporting an earnings beat and guidance raise, the analyst tells investors in a research note. RBC adds however that it will monitor for any slowdown in revenue growth amid a softer labor environment, as well as the sustainability of high incremental margins for Cintas going forward.