Stock of the Day

February 6, 2020

Aramark (ARMK)

$56.67
-$0.32 (-0.6%)
Market Cap: $14.99B

About Aramark

Aramark provides food and facilities services to education, healthcare, business and industry, sports, leisure, and corrections clients in the United States and internationally. It operates through two segments, Food and Support Services United States, and Food and Support Services International. The company offers food-related managed services, including dining, catering, food service management, and convenience-oriented retail services; non-clinical food and food-related support services, such as patient food and nutrition, retail food, environmental services, and procurement services; and plant operations and maintenance, custodial/housekeeping, energy management, grounds keeping, and capital project management services. It also provides on-site restaurants, catering, convenience stores, and executive dining services; beverage and vending services; and facility management services comprising landscaping, transportation, capital program management, payment services, and other facility consulting services relating to building operations. In addition, the company offers concessions, banquet, and catering services; retail services and merchandise sale, recreational, and lodging services; and facility management services at sports, entertainment, and recreational facilities. Further, it offers correctional food; and operates commissaries, laundry facilities, and property rooms. It primarily serves business and industry, sports, leisure and corrections, education, healthcare, public institutions, manufacturing, transportation, service, and other industries. The company was formerly known as ARAMARK Holdings Corporation. Aramark was founded in 1959 and is based in Philadelphia, Pennsylvania.

Today's Trend

Aramark (NYSE: ARMK) is getting a lift from a wave of upbeat analyst commentary and recent operating momentum, helping explain why the stock has been moving higher.

  • JPMorgan raised its price target on Aramark to $55 and kept an overweight rating, signaling confidence in further upside after the company’s strong quarter and improved outlook.
  • Truist lifted its target to $58 and reiterated a buy rating, pointing to continued execution and potential for additional gains.
  • Stifel also increased its target to $54 with a buy rating, while Robert W. Baird boosted its target to $58 and maintained outperform, adding to the bullish analyst backdrop.
  • Recent earnings-call coverage highlighted strong revenue growth and strategic wins, including new business wins and expansion tied to AI data centers, which may support longer-term growth expectations.
  • One valuation-focused article reviewed Aramark’s stock after the strong quarter and AI data center initiative, but did not indicate a new material catalyst beyond reinforcing the improved investment case.

Overall, ARMK is being driven higher by better earnings momentum, contract wins, and a cluster of analyst upgrades that raise expectations for the shares.

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