Ratings for Aramark (NYSE:ARMK) were provided by 6 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 4 | 0 | 2 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 1 | 0 | 2 | 0 | 0 |
| 3M Ago | 2 | 0 | 0 | 0 | 0 |
Analysts have set 12-month price targets for Aramark, revealing an average target of $33.5, a high estimate of $37.00, and a low estimate of $30.00. This upward trend is evident, with the current average reflecting a 4.69% increase from the previous average price target of $32.00.
Decoding Analyst Ratings: A Detailed Look
In examining recent analyst actions, we gain insights into how financial experts perceive Aramark. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Jasper Bibb | Truist Securities | Raises | Buy | $37.00 | $35.00 |
| Toni Kaplan | Morgan Stanley | Raises | Equal-Weight | $30.00 | $28.00 |
| Jasper Bibb | Truist Securities | Raises | Buy | $35.00 | $33.00 |
| Ashish Sabadra | RBC Capital | Maintains | Sector Perform | $33.00 | - |
| Lizzie Dove | Goldman Sachs | Announces | Buy | $33.00 | - |
| Jasper Bibb | Truist Securities | Announces | Buy | $33.00 | - |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Aramark. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Aramark compared to the broader market.
- Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Aramark's stock. This examination reveals shifts in analysts' expectations over time.
Capture valuable insights into Aramark's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
Stay up to date on Aramark analyst ratings.
All You Need to Know About Aramark
Aramark provides food, facilities, and uniform services to a variety of clients and institutions. The majority of company revenue comes from its North American food and support services segment. Smaller but substantial segments include food and support services international, food and support services united states and uniform and career apparel. The food and support services segments provide food for school districts; colleges; healthcare facilities; correctional institutions; and business, sports, and entertainment venues. The uniform segment rents, delivers, cleans, and maintains work clothes and ancillary items like towels and mats to customers in North America and Japan. The company has hundreds of service locations and distribution centers across the United States and Canada.
Key Indicators: Aramark's Financial Health
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: Aramark displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 12.62%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Net Margin: Aramark's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 0.65%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Aramark's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 0.87%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): Aramark's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.19%, the company may face hurdles in achieving optimal financial performance.
Debt Management: Aramark's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 2.2.
Understanding the Relevance of Analyst Ratings
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.