UBS Group Has Lowered Expectations for Aramark (NYSE:ARMK) Stock Price

Key Points

• UBS lowered Aramark’s price target from $71 to $65 but maintained its Buy rating, implying about 20.5% upside from the prior close.
• Analyst sentiment remains positive: 13 analysts rate the stock Buy and two Hold, with an average price target of $68.82.
• Aramark beat quarterly earnings and revenue estimates, reporting EPS of $0.52 and revenue of $5.06 billion; revenue grew 9.3% year over year.

Aramark (NYSE:ARMK - Get Free Report) had its price objective decreased by equities researchers at UBS Group from $71.00 to $65.00 in a research note issued to investors on Wednesday, Benzinga reports. The firm currently has a "buy" rating on the stock. UBS Group's target price indicates a potential upside of 20.54% from the stock's previous close.

A number of other equities analysts also recently commented on ARMK. Morgan Stanley set a $63.00 target price on shares of Aramark in a research note on Tuesday, August 11th. New Street Research set a $70.00 price target on shares of Aramark in a research note on Thursday, August 13th. Stifel Nicolaus increased their price target on shares of Aramark from $54.00 to $70.00 and gave the company a "buy" rating in a research note on Wednesday, August 12th. Robert W. Baird raised their price target on shares of Aramark from $63.00 to $69.00 and gave the stock an "outperform" rating in a report on Wednesday, August 12th. Finally, Citigroup upped their price objective on Aramark from $74.00 to $75.50 and gave the company a "buy" rating in a report on Monday, October 12th. Thirteen research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $68.82.

Aramark Trading Down 0.5%

Shares of ARMK traded down $0.29 during midday trading on Wednesday, reaching $53.92. The company had a trading volume of 1,336,817 shares, compared to its average volume of 2,796,450. Aramark has a 1-year low of $35.07 and a 1-year high of $62.65. The stock has a market cap of $14.22 billion, a PE ratio of 37.71, a price-to-earnings-growth ratio of 0.81 and a beta of 1.10. The firm has a 50 day simple moving average of $55.35 and a 200-day simple moving average of $50.53. The company has a quick ratio of 1.14, a current ratio of 1.28 and a debt-to-equity ratio of 1.80.

Aramark (NYSE:ARMK - Get Free Report) last announced its quarterly earnings results on Tuesday, August 11th. The company reported $0.52 earnings per share for the quarter, beating the consensus estimate of $0.48 by $0.04. Aramark had a net margin of 1.93% and a return on equity of 17.68%. The firm had revenue of $5.06 billion for the quarter, compared to analysts' expectations of $4.94 billion. During the same quarter in the previous year, the company posted $0.40 EPS. The company's revenue was up 9.3% compared to the same quarter last year. Research analysts forecast that Aramark will post 2.27 EPS for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. BlackRock Inc. acquired a new stake in shares of Aramark during the second quarter valued at about $1,411,586,000. Jupiter Topco LLC purchased a new stake in shares of Aramark in the 2nd quarter valued at approximately $1,041,407,000. Bank of New York Mellon Corp acquired a new position in shares of Aramark in the 2nd quarter worth approximately $140,853,000. Bank of America Corp DE acquired a new position in shares of Aramark in the 2nd quarter worth approximately $137,742,000. Finally, PointState Capital LP acquired a new position in shares of Aramark in the 2nd quarter worth approximately $135,077,000.

Aramark Company Profile

Aramark provides food and facilities management services to organizations around the world. Its clients include schools and universities, hospitals and other healthcare providers, businesses, sports and entertainment venues, and correctional institutions. The company plans and operates dining programs, including meal preparation, catering, concessions, and retail food services. It also provides facilities services such as maintenance, cleaning, and related operational support tailored to client needs.

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