What happened

Shares of Cintas (NASDAQ:CTAS) were trading 10.2% higher at noon, EDT. The provider of corporate uniforms, cleaning services, and worker safety measures held a call on Wednesday to update investors on the business impact of the COVID-19 pandemic. Analysts walked away impressed and filed a number of price target increases on Thursday morning.

So what

RBC Capital raised his target price on Cintas from $220 to $250 per share. The business update was "better than feared" in RBC analyst Seth Weber's view, and the company seems poised to benefit from a global focus on keeping workplaces safe, healthy, and sanitary.

Analyst Kevin McVeigh from Credit Swiss lifted his price target from $200 to $205 per share, noting that the bulk of Cintas' revenue decline appears to have landed in April and early May.

On the call, Cintas said that fourth-quarter revenues should land near $1.55 billion. Management declined to offer profit margin or bottom-line targets due to the uncertainty of the COVID-19 situation.

Close-up photo of a female doctor wearing a safety mask with two other doctors in the blurred background.

Image source: Getty Images.

Now what

Some customers have closed down their day-to-day operations or moved their businesses into work-from-home setups, reducing their need for Cintas' services. For others, this company plays an active role in the fight against coronavirus infections. Cintas provides personal protection equipment, disinfecting sprays and hand sanitizers, and uniform laundry services to keep the virus at bay.

"The last 55 days have been a very challenging period and we're not through it yet," said CEO Scott Farmer. "However, there are encouraging signs with the discussions of reopening the economy. We remain excited about the future of Cintas and our opportunity to help businesses get ready for the workday."

Cintas' stock closed Wednesday's trading at $199.47 per share. The stock is trading at 21 times free cash flows today, 43% below February's all-time highs. Last year was a great one for Cintas, and the stock is trading just 9% lower from a 52-week perspective.