Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, January 10, 2025

Article Excerpt

CINTAS CORP., $189.30, Nasdaq symbol CTAS, remains a buy for aggressive investors. Cintas designs and makes uniforms, then sells them to businesses, mainly in North America. It also offers related products and services such as office-cleaning and first-aid kits. The company has offered to acquire UniFirst Corp. (New York symbol UNF), which makes and rents uniforms to businesses in North America. Like Cintas, it also sells first aid and safety supplies. While the combined company would control about 50% of the uniform services market, Cintas is confident that the deal would win regulatory approval. As well, Cintas’s strong record of successfully absorbing new businesses, including its March 2017 purchase of rival uniform supplier G&K Services for $2.2 billion, helps offset the risk of using acquisitions to expand. The company is offering $275.00 a share for UniFirst, or a total of $5.3 billion. That’s equal to 7% of its $77.7 billion market cap. UniFirst’s board of directors feels the offer undervalues the company. Moreover, the Croatti family,…