Vestis Corporation (NYSE:VSTS) Receives Consensus Rating of "Reduce" from Brokerages

Key Points

• Wall Street is cautious on Vestis. The stock has a consensus rating of “Reduce” from seven analysts, with four sell ratings, two holds, and one buy. The average 12-month price target is $9.50.
• Recent analyst actions were mixed. Goldman Sachs reiterated a sell rating with a $7.50 target, while Barclays raised its target to $9.00 but kept an underweight rating. William Blair was more optimistic, upgrading Vestis to outperform.
• The company’s latest quarter beat expectations. Vestis reported EPS of $0.16 versus the expected $0.09 and revenue of $659.44 million versus $655.32 million expected. The company also posted year-over-year revenue that was slightly lower, but still showed improved profitability versus the prior year.

Shares of Vestis Corporation (NYSE:VSTS - Get Free Report) have been assigned an average rating of "Reduce" from the seven analysts that are covering the company, Marketbeat Ratings reports. Four investment analysts have rated the stock with a sell recommendation, two have given a hold recommendation and one has issued a buy recommendation on the company. The average 12-month price target among brokerages that have covered the stock in the last year is $9.50.

A number of brokerages recently commented on VSTS. The Goldman Sachs Group reaffirmed a "sell" rating and set a $7.50 price objective on shares of Vestis in a research report on Wednesday. Stifel Nicolaus increased their target price on shares of Vestis from $8.50 to $11.00 and gave the stock a "hold" rating in a research report on Wednesday. Weiss Ratings cut shares of Vestis from a "sell (d)" rating to a "sell (d-)" rating in a report on Wednesday. Barclays upped their price target on shares of Vestis from $6.00 to $9.00 and gave the stock an "underweight" rating in a research note on Friday. Finally, William Blair upgraded Vestis from a "market perform" rating to an "outperform" rating in a report on Tuesday.

Vestis Stock Up 0.3%

Shares of Vestis stock opened at $12.21 on Friday. Vestis has a 1 year low of $3.98 and a 1 year high of $12.60. The company has a market cap of $1.61 billion, a P/E ratio of -87.17 and a beta of 0.85. The company has a current ratio of 2.13, a quick ratio of 1.74 and a debt-to-equity ratio of 1.44. The stock has a 50-day moving average price of $8.78 and a 200 day moving average price of $7.40.

Vestis (NYSE:VSTS - Get Free Report) last issued its earnings results on Tuesday, May 12th. The company reported $0.16 earnings per share for the quarter, beating analysts' consensus estimates of $0.09 by $0.07. The company had revenue of $659.44 million for the quarter, compared to the consensus estimate of $655.32 million. Vestis had a positive return on equity of 5.27% and a negative net margin of 0.63%.The firm's quarterly revenue was down .9% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.05) EPS. As a group, analysts expect that Vestis will post 0.5 EPS for the current fiscal year.

Key Vestis News

Here are the key news stories impacting Vestis this week:

• Positive Sentiment: Vestis reported modest profitability in its latest quarter, with earnings and revenue both coming in ahead of expectations, which helped reassure investors that its turnaround is gaining traction. Vestis (VSTS) Is Up 22.0% After Returning To Modest Profitability On Flat 2026 Revenue Guidance
• Positive Sentiment: The company raised its FY 2026 guidance for adjusted EBITDA to $295 million-$325 million and free cash flow to $120 million-$150 million, signaling improving operating leverage and cash generation. Vestis raises FY 2026 outlook to $295M-$325M adjusted EBITDA and $120M-$150M free cash flow
• Positive Sentiment: Analysts turned more constructive, with William Blair, Stifel, and Robert W. Baird all issuing upbeat views, while Zacks highlighted favorable earnings estimate revisions that could support further upside. William Blair upgrades Vestis (VSTS)
• Positive Sentiment: Recent commentary points to cost discipline, margin recovery, and commercial initiatives as additional catalysts, reinforcing the market’s belief that the company’s earnings trend is improving. VSTS Q1 deep dive: Cost discipline and commercial initiatives drive margin recovery

Institutional Investors Weigh In On Vestis

Hedge funds and other institutional investors have recently made changes to their positions in the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Vestis by 10.9% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 355,493 shares of the company's stock valued at $3,519,000 after buying an additional 34,809 shares in the last quarter. Acadian Asset Management LLC bought a new position in Vestis during the first quarter valued at approximately $762,000. Creative Planning acquired a new stake in Vestis in the second quarter valued at approximately $65,000. JPMorgan Chase & Co. lifted its stake in Vestis by 739.5% in the second quarter. JPMorgan Chase & Co. now owns 675,770 shares of the company's stock valued at $3,872,000 after acquiring an additional 595,276 shares during the last quarter. Finally, American Century Companies Inc. grew its position in Vestis by 9.8% in the second quarter. American Century Companies Inc. now owns 275,531 shares of the company's stock worth $1,579,000 after acquiring an additional 24,695 shares in the last quarter. 97.40% of the stock is owned by hedge funds and other institutional investors.

About Vestis

Vestis Corporation provides uniform rentals and workplace supplies in the United States and Canada. Its products include uniform options, such as shirts, pants, outerwear, gowns, scrubs, high visibility garments, particulate-free garments, and flame-resistant garments, as well as shoes and accessories; and workplace supplies, including managed restroom supply services, first-aid supplies and safety products, floor mats, towels, and linens. The company serves manufacturing, hospitality, retail, food processing, food service, pharmaceuticals, healthcare, automotive, and cleanroom industries.

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