Unifirst (NYSE:UNF) Rating Increased to Hold at Zacks Research

Zacks Research upgraded shares of Unifirst (NYSE:UNF) from a strong sell rating to a hold rating in a research report report published on Monday morning,Zacks.com reports.

UNF has been the topic of a number of other research reports. UBS Group set a $182.00 price objective on Unifirst in a research note on Thursday, October 23rd. Weiss Ratings reissued a “hold (c)” rating on shares of Unifirst in a report on Wednesday, October 8th. Finally, Barclays lowered their price objective on shares of Unifirst from $152.00 to $145.00 and set an “underweight” rating on the stock in a research note on Thursday, October 23rd. Four investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Reduce” and an average target price of $174.75.

Unifirst Stock Performance

Shares of UNF stock opened at $199.41 on Monday. The stock has a market capitalization of $3.61 billion, a price-to-earnings ratio of 24.99 and a beta of 0.76. Unifirst has a one year low of $147.66 and a one year high of $243.70. The company’s 50-day simple moving average is $167.21 and its 200-day simple moving average is $172.10.

Unifirst (NYSE:UNF) last announced its quarterly earnings data on Wednesday, October 22nd. The textile maker reported $2.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.15 by $0.13. Unifirst had a return on equity of 7.11% and a net margin of 6.10%.The firm had revenue of $614.45 million for the quarter, compared to analysts’ expectations of $607.02 million. During the same quarter in the prior year, the firm posted $2.39 earnings per share. Unifirst’s revenue for the quarter was down 4.0% compared to the same quarter last year. Unifirst has set its FY 2026 guidance at 6.580-6.980 EPS. As a group, research analysts forecast that Unifirst will post 7.71 EPS for the current year.

Unifirst Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, January 2nd. Investors of record on Friday, December 5th will be issued a dividend of $0.365 per share. This is an increase from Unifirst’s previous quarterly dividend of $0.35. This represents a $1.46 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Friday, December 5th. Unifirst’s dividend payout ratio is 18.30%.

Hedge Funds Weigh In On Unifirst

Several institutional investors and hedge funds have recently modified their holdings of the stock. SageView Advisory Group LLC raised its holdings in shares of Unifirst by 4.0% during the first quarter. SageView Advisory Group LLC now owns 1,643 shares of the textile maker’s stock worth $286,000 after acquiring an additional 63 shares in the last quarter. Global Retirement Partners LLC raised its stake in shares of Unifirst by 5.5% during the 3rd quarter. Global Retirement Partners LLC now owns 1,204 shares of the textile maker’s stock worth $201,000 after purchasing an additional 63 shares in the last quarter. Pullen Investment Management LLC lifted its holdings in shares of Unifirst by 0.9% during the 2nd quarter. Pullen Investment Management LLC now owns 7,426 shares of the textile maker’s stock valued at $1,398,000 after buying an additional 69 shares during the last quarter. Amalgamated Bank lifted its holdings in shares of Unifirst by 1.7% during the 3rd quarter. Amalgamated Bank now owns 4,359 shares of the textile maker’s stock valued at $729,000 after buying an additional 74 shares during the last quarter. Finally, American Century Companies Inc. grew its stake in shares of Unifirst by 2.0% in the 2nd quarter. American Century Companies Inc. now owns 4,027 shares of the textile maker’s stock valued at $758,000 after buying an additional 78 shares in the last quarter. 78.17% of the stock is currently owned by hedge funds and other institutional investors.

Key Stores Impacting Unifirst

Here are the key news stories impacting Unifirst this week:

• Positive Sentiment: Cintas submitted a $275-per-share, all-cash proposal (approx. $5.2B) to buy UniFirst, a ~64% premium to recent trading — a direct, high-value exit for UNF shareholders that explains the rally. Reuters: Cintas makes $5.2B bid
• Positive Sentiment: Cintas says combining the companies unlocks large route-density efficiencies (MarketBeat cites ~$375M in annual cost savings) and included a $350M reverse-termination fee — signaling seriousness and boosting deal credibility. MarketBeat: Bid ignites route dominance
• Positive Sentiment: Activist investor Boyar Value Group urged the UniFirst board to launch a formal strategic review in light of the offer, increasing pressure on management to engage with bidders or seek better alternatives. BusinessWire: Boyar urges strategic review
• Neutral Sentiment: UniFirst officially confirmed receipt of the unsolicited, non‑binding proposal on Dec. 22 — the company must now evaluate the offer and can seek competing bids or negotiate. GlobeNewswire: UniFirst confirms receipt
• Neutral Sentiment: UniFirst will report its Q1 fiscal 2026 results on Jan. 7, 2026 — any forward guidance or commentary could influence deal dynamics or the stock if management signals strategic intent. GlobeNewswire: Q1 results date
• Neutral Sentiment: Analysts and outlets are reassessing UNF valuation after a sharp one‑month rebound — the offer forces a re-price whether the deal closes or triggers a rival bid/strategic review. Yahoo Finance: Valuation assessment
• Negative Sentiment: Control by the Croatti family (dual-class shares) gives them outsized voting power and could block a sale despite the large cash premium — a major governance obstacle. MarketBeat: Family control could block sale
• Negative Sentiment: Regulatory/antitrust risk from combining the #1 and #3 players and some brokerages maintaining conservative ratings (consensus “Reduce”) create deal closure risk and downside if the offer fails. AmericanBankingNews: Broker ratings

About Unifirst

UniFirst Corporation (NYSE: UNF) is a leading provider of customized uniform rental and facility service programs in North America and Europe. The company specializes in the rental, laundering and maintenance of workwear, corporate apparel and protective garments for a broad range of industries, including manufacturing, automotive, hospitality, healthcare and food processing. UniFirst also offers a suite of facility service products such as entrance mats, restroom supplies, wipers, mops and hygienic services designed to help customers maintain clean and safe environments.

In addition to its core uniform rental business, UniFirst has expanded its product portfolio to include safety and first-responder gear, flame-resistant clothing, high-visibility apparel and personal protective equipment (PPE).