Wells starts Cintas at Underweight on premium to peer Rollins

Wells Fargo analyst Jason Haas initiated coverage of Cintas (CTAS) with an Underweight rating and $735 price target. The company is the industry leader in uniform rental and facility services is a “best-in-class operator,” the analyst tells investors in a research note. However, the firm says Cintas now trades at a slight premium to fellow best-in-class operator from the pest control industry, Rollins (ROL), which it has never done historically. Rollins’ business has proven to be more recession-proof, adds Wells.