We think recently-public Aramark (NYSE:ARMK) represents a compelling way to capitalize on the trend of institutions increasingly opting to outsource food and support services, and see shares outperforming as investors begin to appreciate the company's favorable market position in a growing market as well as the operating leverage inherent in its business. With shares trading at a material discount to food and uniform services peers - currently at 7.7 times our 2015 EBITDA estimate vs. a 9.1 multiple for its peers - we think there is almost 40% upside in ARMK shares as we see no reason for the company to trade at a discount, particularly as recent investments in IT systems and restructuring actions have the potential...
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