Jefferies downgrades Cintas citing valuation concerns
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Cintas Corporation (NASDAQ:CTAS) was downgraded on Friday by Jefferies even as the company posted stronger than expected Q3 results. 
The bankâs analysts cited a cloudy macro backdrop as a key concern moving forward, with tougher comparisons expected for the remainder of the year. The valuation also appears rich, according to the teamâs analysis.
âWeâre downgrading shares of CTAS to Hold from Buy not because of anything related to the quarter or even the long-term structural growth opportunities of the business,â the note clarified. âWe believe FY2024 will be a challenging year for the business in the face of a tougher macro backdrop and thus believe Street estimates are too high.â
They added that the stockâs over 20% rise since October has stretched the valuation. 
âTo be clear, we like the business and think the company is very well run, however, valuation and our view of Street estimates being too high in light of tougher macro backdrop moves us to
the sidelines,â the team concluded. 
Shares of Cintas Corporation (CTAS) slipped 0.8% shortly before Fridayâs market open.
Read the latest earnings call transcript.