Update shared on 05 Dec 2025
Analysts have modestly adjusted their price target on UniFirst to $165.50 from $165.50. This reflects largely unchanged views on the company’s fair value, as incremental tweaks to discount rate, revenue growth, profit margin, and future P E assumptions leave the overall outlook intact.
What's in the News
- Activist investor Boyar Value Group issued an open letter urging UniFirst’s board to launch an immediate strategic review, reengage potential buyers including Cintas, and conduct a transparent sale process after rejecting a prior takeover proposal at a more than 45% premium (Key Developments).
- Engine Capital went public with criticism of UniFirst’s governance, calling for shareholder representation on the board and arguing that a sale to a strategic buyer is the best path to unlock value and avoid prolonged proxy battles (Key Developments).
- UniFirst issued a supplemental proxy statement recommending shareholders support incumbent director nominees Steven S. Sintros and Joseph M. Nowicki at the 2026 annual meeting, signaling a contested governance environment (Key Developments).
- The board approved higher quarterly cash dividends on both Common and Class B shares, payable January 2, 2026, highlighting a continued focus on returning capital to shareholders in the context of ongoing activist pressure (Key Developments).
- UniFirst completed a share repurchase tranche totaling 335,810 shares, or 1.81% of shares outstanding, for $59.82 million under its April 2025 buyback authorization, providing additional capital return alongside updated fiscal 2026 guidance targeting up to $2.495 billion in revenue and up to $6.98 in EPS (Key Developments).
Valuation Changes
- Fair Value: Unchanged at $165.50 per share, indicating a stable assessment of UniFirst’s intrinsic value.
- Discount Rate: Fallen slightly from 6.97% to 6.96%, reflecting a marginally lower perceived risk profile or cost of capital.
- Revenue Growth: Essentially unchanged at about 3.30%, signaling steady long term top line expectations.
- Net Profit Margin: Flat at roughly 6.00%, with no meaningful shift in projected profitability.
- Future P E: Edged down slightly from 20.14x to 20.14x, suggesting a minimally lower valuation multiple applied to future earnings.
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