Citi Raises Cintas (CTAS) Target but Keeps Sell Rating

Core Viewpoint - Citi has raised its price target for Cintas Corporation (CTAS) to $181 from $176 while maintaining a Sell rating on the shares. This comes alongside Cintas' renewed takeover bid for UniFirst Corp. valued at approximately $3.96 billion in equity [1]. Group 1: Takeover Bid Details - Cintas has made a cash offer of $275 per share for UniFirst, which is about nine months after a previous bid at the same price was rejected. The latest proposal implies a total value of around $5.2 billion, representing a 62% premium over UniFirst's last closing price following a stock drop after the prior offer was rejected [2]. - This is not the first attempt by Cintas to acquire UniFirst, as there have been two earlier failed approaches, including one earlier this year that was withdrawn. The current bid follows extensive regulatory work, and Cintas believes that approvals are achievable. The proposal includes a $350 million reverse termination fee if the transaction fails to receive clearance [3]. Group 2: Company Overview - Cintas Corporation develops and manages uniform programs using fabric-based products, serving businesses of various sizes primarily in the US, with additional operations in Canada and Latin America [4].