Benzinga | Jan 6, 2022 02:51PM EST

Baird Upgrades UniFirst To Outperform, Sees Notable Upside

* Baird analyst Andrew Wittmann upgraded UniFirst Corp (NYSE:UNF) to Outperform from Neutral and raised the price target to $236 (an upside of 18%), from $215.

* The analyst says that disappointing guidance has yielded depressed sentiment, and heavy investment will weigh on earnings for some time, but ultimately, these investments should make UNF much more competitive.

* Also, read UniFirst Q1 Results Beat Estimates.

* Wittmann believes its relative valuation discount and cash-laden balance sheet could prove important assets in a rising rate environment.

* Price Action: UNF shares traded higher by 1.98% at $199.90 on the last check Thursday.