Vestis (NYSE:VSTS) Given New $11.00 Price Target at Stifel Nicolaus

Key Points

• Stifel Nicolaus raised Vestis’s price target from $8.50 to $11.00 while keeping a hold rating, though the new target still implies a slight downside from the current share price.
• Analyst sentiment remains mixed to negative: William Blair upgraded the stock to outperform, but several others maintained sell or underweight views, leaving the consensus rating at Reduce.
• Vestis recently beat quarterly expectations, posting EPS of $0.16 versus $0.09 expected and revenue of $659.4 million versus $655.3 million expected, even as revenue slipped 0.9% year over year and profitability stayed negative.

Vestis (NYSE:VSTS - Get Free Report) had its price objective increased by stock analysts at Stifel Nicolaus from $8.50 to $11.00 in a report released on Wednesday,Benzinga reports. The brokerage presently has a "hold" rating on the stock. Stifel Nicolaus' target price would indicate a potential downside of 4.56% from the company's current price.

Several other analysts have also commented on the stock. William Blair raised shares of Vestis from a "market perform" rating to an "outperform" rating in a research report on Tuesday. Robert W. Baird raised their price target on shares of Vestis from $10.00 to $14.00 and gave the stock a "neutral" rating in a research note on Wednesday. Barclays reiterated an "underweight" rating on shares of Vestis in a research note on Tuesday, February 17th. Weiss Ratings reissued a "sell (d)" rating on shares of Vestis in a report on Monday, April 20th. Finally, The Goldman Sachs Group restated a "sell" rating and issued a $7.50 target price on shares of Vestis in a research note on Wednesday. One research analyst has rated the stock with a Buy rating, two have given a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat, Vestis currently has an average rating of "Reduce" and an average target price of $9.63.

Vestis Stock Performance

Shares of VSTS traded down $0.47 on Wednesday, reaching $11.53. 494,579 shares of the company's stock traded hands, compared to its average volume of 1,717,314. The stock's 50 day simple moving average is $8.54 and its two-hundred day simple moving average is $7.27. The company has a current ratio of 2.17, a quick ratio of 1.74 and a debt-to-equity ratio of 1.48. Vestis has a 52-week low of $3.98 and a 52-week high of $12.60. The stock has a market cap of $1.52 billion, a PE ratio of -31.27 and a beta of 0.85.

Vestis (NYSE:VSTS - Get Free Report) last announced its earnings results on Tuesday, May 12th. The company reported $0.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.09 by $0.07. The firm had revenue of $659.44 million during the quarter, compared to analyst estimates of $655.32 million. Vestis had a positive return on equity of 2.08% and a negative net margin of 1.75%.The business's revenue was down .9% compared to the same quarter last year. During the same period last year, the firm posted ($0.05) EPS. On average, analysts forecast that Vestis will post 0.43 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Royal Bank of Canada increased its holdings in Vestis by 1,520.5% during the 4th quarter. Royal Bank of Canada now owns 5,688,399 shares of the company's stock worth $37,942,000 after acquiring an additional 5,337,380 shares during the period. Greenstone Partners & Co. LLC purchased a new position in shares of Vestis in the 4th quarter worth about $33,979,000. Jacobs Levy Equity Management Inc. boosted its stake in Vestis by 1,265.8% in the third quarter. Jacobs Levy Equity Management Inc. now owns 1,960,150 shares of the company's stock worth $8,879,000 after buying an additional 1,816,633 shares in the last quarter. SG Americas Securities LLC grew its position in Vestis by 571.0% during the first quarter. SG Americas Securities LLC now owns 1,979,460 shares of the company's stock valued at $15,559,000 after acquiring an additional 1,684,460 shares during the last quarter. Finally, Medina Value Partners LLC bought a new position in shares of Vestis during the third quarter valued at about $6,469,000. Hedge funds and other institutional investors own 97.40% of the company's stock.

Vestis News Summary

Here are the key news stories impacting Vestis this week:

• Positive Sentiment: Vestis beat quarterly expectations, reporting $0.16 EPS versus the $0.09 consensus and revenue of $659.4 million versus $655.3 million expected, signaling better-than-expected execution. Article Title
• Positive Sentiment: The company updated FY2026 guidance with revenue expectations around $2.7 billion, above the market’s roughly $2.6 billion estimate, which points to confidence in the business outlook. Article Title
• Positive Sentiment: Robert W. Baird raised its price target on Vestis to $14 from $10, implying more upside potential even though the rating remained neutral. Article Title
• Neutral Sentiment: Investors also reviewed the earnings call transcript and presentation for more detail on management’s strategic initiatives and EBITDA improvement plans. Article Title
• Neutral Sentiment: Several market recap and snapshot articles highlighted the stock’s strong reaction to the earnings release, but did not add new material information beyond the results and guidance. Article Title
• Negative Sentiment: Revenue was still slightly down year over year, and net margin remained negative, showing Vestis still has work to do to turn its recent improvement into sustained profitability. Article Title

Vestis Company Profile

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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