- UBS sets a price target of $46 for NYSE:ARMK, indicating a potential upside of 16.28%.
- Aramark reports a 29% year-over-year increase in adjusted EPS to $0.40, aligning with analyst expectations.
- The company achieves record client retention levels over 97% and secures one of the largest new client contracts in its history.
Aramark Holdings (NYSE: ARMK) is a prominent player in the food services and facilities management industry. The company operates globally, providing essential services to various sectors, including education, healthcare, and business. Aramark is recognized as a leading provider in North America and holds a top-three position internationally in most of its significant markets.
On August 6, 2025, UBS set a price target of $46 for ARMK, suggesting a potential price increase of approximately 16.28% from its current price of $39.56. This optimistic outlook comes on the heels of Aramark’s Q3 FY2025 earnings report, which revealed a 29% year-over-year increase in adjusted earnings per share (EPS), meeting analyst forecasts at $0.40. Despite a slight revenue miss, with GAAP total revenue at $4.63 billion compared to the estimated $4.65 billion, the company achieved record profitability.
Aramark’s strong performance is driven by operational efficiency gains and robust business retention. The company has secured one of the largest new client contracts in its history and achieved record client retention levels, now exceeding 97%. These achievements, along with the integration of AI-driven solutions in its Supply Chain optimization initiatives, have prompted management to reaffirm a robust full-year outlook.
Historically, Aramark’s stock has shown a 50:50 chance of moving up or down following earnings announcements, with an average one-day increase of 3.5% and a maximum recorded gain of 10%. In the second quarter of fiscal 2025, Aramark reported a 2% increase in revenue to $4.28 billion and 3% organic growth, despite facing external challenges. The company’s operating income rose by 9% to $174 million, and adjusted earnings per share increased by 22% to $0.34.
Currently, ARMK’s stock price is $39.56, reflecting a decrease of 8.23% with a change of -$3.55. The stock has fluctuated between a low of $39.29 and a high of $41.51 during the day. Over the past year, ARMK has reached a high of $44.49 and a low of $29.92. The company has a market capitalization of approximately $10.37 billion, with a trading volume of 6.41 million shares today.
