Vestis (NYSE:VSTS) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Vestis from “strong buy” to “hold.” Analysts’ overall consensus is “reduce,” with one buy, three hold, and four sell ratings and an average price target of $9.50.
• Vestis reported quarterly EPS of $0.18, beating the $0.10 consensus estimate, although revenue of $661.7 million fell short of the $668.9 million forecast.
• Shares opened at $13.83, near the upper end of their 12-month range, while institutional investors own 97.4% of the stock; despite improved adjusted profitability, the company posted a negative net margin of 0.63%.

Vestis (NYSE:VSTS - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a note issued to investors on Monday,Zacks.com reports.

Several other equities research analysts have also recently weighed in on the company. Weiss Ratings reissued a "sell (d-)" rating on shares of Vestis in a research note on Friday. Robert W. Baird raised their price objective on Vestis from $10.00 to $14.00 and gave the company a "neutral" rating in a research note on Wednesday, May 13th. William Blair upgraded Vestis from a "market perform" rating to an "outperform" rating in a report on Tuesday, May 12th. Barclays boosted their target price on Vestis from $6.00 to $9.00 and gave the company an "underweight" rating in a research report on Friday, May 15th. Finally, The Goldman Sachs Group restated a "sell" rating on shares of Vestis in a report on Tuesday. One investment analyst has rated the stock with a Buy rating, three have given a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Reduce" and an average price target of $9.50.

Vestis Price Performance

Shares of Vestis stock opened at $13.83 on Monday. The company has a current ratio of 2.13, a quick ratio of 1.69 and a debt-to-equity ratio of 1.44. Vestis has a 12 month low of $3.98 and a 12 month high of $16.90. The stock has a 50 day moving average of $14.21 and a 200 day moving average of $10.68. The firm has a market cap of $1.83 billion, a PE ratio of -98.79 and a beta of 0.97.

Vestis (NYSE:VSTS - Get Free Report) last posted its earnings results on Tuesday, August 11th. The company reported $0.18 EPS for the quarter, beating analysts' consensus estimates of $0.10 by $0.08. The firm had revenue of $661.66 million during the quarter, compared to the consensus estimate of $668.94 million. Vestis had a positive return on equity of 5.27% and a negative net margin of 0.63%. On average, research analysts expect that Vestis will post 0.52 EPS for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. State of Wyoming increased its position in shares of Vestis by 10.4% during the fourth quarter. State of Wyoming now owns 15,145 shares of the company's stock worth $101,000 after acquiring an additional 1,428 shares during the period. Quantinno Capital Management LP boosted its holdings in shares of Vestis by 2.1% in the first quarter. Quantinno Capital Management LP now owns 86,042 shares of the company's stock valued at $676,000 after purchasing an additional 1,756 shares during the period. Captrust Financial Advisors boosted its holdings in shares of Vestis by 15.6% in the second quarter. Captrust Financial Advisors now owns 20,599 shares of the company's stock valued at $118,000 after purchasing an additional 2,787 shares during the period. Farther Finance Advisors LLC grew its stake in Vestis by 176.1% in the fourth quarter. Farther Finance Advisors LLC now owns 5,193 shares of the company's stock worth $35,000 after purchasing an additional 3,312 shares in the last quarter. Finally, Mariner LLC grew its stake in Vestis by 3.2% in the third quarter. Mariner LLC now owns 123,981 shares of the company's stock worth $562,000 after purchasing an additional 3,798 shares in the last quarter. Hedge funds and other institutional investors own 97.40% of the company's stock.

Key Stories Impacting Vestis

Here are the key news stories impacting Vestis this week:

• Positive Sentiment: Vestis reported adjusted earnings of $0.18 per share, exceeding analyst estimates of $0.10-$0.11 and rising from $0.05 a year earlier. Vestis Q3 Earnings Surpass Estimates
• Positive Sentiment: The company increased its full-year 2026 outlook, including a higher cash-flow expectation. Full-year revenue guidance of approximately $2.7 billion is broadly in line with analyst forecasts, reducing the risk of a significant sales-target miss. Vestis Reports Third Quarter 2026 Results and Increases Full-Year Outlook
• Positive Sentiment: Vestis generated $80.9 million in adjusted EBITDA and $24.2 million in adjusted net income, supporting the view that cost management and operational improvements are strengthening profitability. Vestis Fiscal Q3 Earnings Snapshot
• Neutral Sentiment: Quarterly revenue was $661.7 million, below the $668.9 million consensus estimate. The modest sales shortfall was offset by the earnings beat and improved outlook, but investors will likely monitor whether revenue growth accelerates.
• Negative Sentiment: Despite positive adjusted profitability, Vestis reported a negative net margin of 0.63%, indicating that bottom-line performance remains pressured and that execution risks have not been eliminated.

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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