ARAMARK Holdings Corp Receives New Coverage from Analysts at Wells Fargo & Co. (ARMK)
Investment analysts at Wells Fargo & Co. began coverage on shares of ARAMARK Holdings Corp (NASDAQ:ARMK) in a note issued to investors on Tuesday, TheFlyOnTheWall.com reports. The firm set an “outperform” rating on the stock.
The analysts wrote, “We are looking for the implementation of low-hanging standardized operational practices and procedures, and long-overdue technology investments to drive cost efficiencies across ARAMARK’s food, labor, and G&A costs,” the report noted. “Over the past year, ARMK has begun to roll out what it calls the EXCEL model, which (1) employs common standards and processes across like business segments, (2) accelerates investment in operational management tools and technology, and (3) uses business-segment specific performance metrics and monitoring. With the ongoing implementation of the EXCEL model, we believe that there is an opportunity for ARMK to deliver 20 basis points (bps) of net operating income margin improvement over each of the next three years, driven by a total of $200-300 million in gross cost savings across the company’s , $10 billion addressable cost structure.”
ARAMARK Holdings Corp (NASDAQ:ARMK) traded up 1.51% during mid-day trading on Tuesday, hitting $24.88. The stock had a trading volume of 626,608 shares. ARAMARK Holdings Corp has a 1-year low of $20.10 and a 1-year high of $26.72. The stock’s 50-day moving average is $24.59 and its 200-day moving average is $24.59. The company has a market cap of $5.022 billion and a P/E ratio of 73.16.
Separately, analysts at JPMorgan Chase & Co. initiated coverage on shares of ARAMARK Holdings Corp in a research note to investors on Tuesday. They set an “overweight” rating and a $28.00 price target on the stock. One analyst has rated the stock with a hold rating and eight have assigned a buy rating to the stock. ARAMARK Holdings Corp currently has a consensus rating of “Buy” and a consensus price target of $29.83.
ARAMARK Holdings Corporation is a global provider of food, facilities and uniform services to education, healthcare, business and industry and sports, leisure and corrections clients.
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