🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

WillScot Mobile Mini shares target cut by Stifel on challenges

EditorNatashya Angelica
Published 04/03/2024, 05:48 PM

On Wednesday, Stifel adjusted its price target for WillScot (NASDAQ:WSC) Mobile Mini (NASDAQ:MINI_old) Holdings Corp. (NASDAQ:WSC), lowering it to $50 from the previous $58, while reaffirming a Buy rating on the stock. The revision was made in anticipation of the company's first-quarter 2024 performance, taking into account several challenges that WillScot Mobile Mini is facing.

The company is navigating through a period marked by weaker nonresidential construction indicators, particularly in sectors such as retail, which is expected to impact the number of units rented in the first half of 2024. Moreover, unfavorable weather conditions have delayed the onset of the construction season, further contributing to the anticipated weaker performance in the near term.

Another factor influencing the revised price target is WillScot Mobile Mini's ongoing regulatory process regarding its acquisition of Mobile Mini (MGRC). The company has received a second request from the Federal Trade Commission (FTC), which, although not a sign of a potential block of the deal, implies additional time and financial costs due to the complexity of the compliance process.

Despite these headwinds, the analyst from Stifel notes that the acquisition of MGRC is still expected to be completed in the second half of 2024. Following the closure of the deal, WillScot Mobile Mini is likely to organize an Analyst Day to provide financial targets and further insights.

The new $50 price target is based on a 9x multiple of Stifel's 2025 EBITDA estimate for WillScot Mobile Mini, reflecting both a reduction in earnings estimates and a reassessment of valuation multiples. This adjustment aligns with a more cautious outlook for the company's performance in the first half of the year, while still maintaining a positive long-term view as indicated by the Buy rating.

InvestingPro Insights

As investors weigh Stifel's revised price target for WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC), InvestingPro data and tips offer additional context for the company's current financial position. With a market cap of $8.47 billion and a P/E ratio of 18.65, WillScot Mobile Mini appears to be trading at a low P/E ratio relative to near-term earnings growth, which is a positive sign for investors looking for value.

The company's impressive gross profit margins stand at 56.41%, highlighting its ability to maintain profitability despite market challenges. Moreover, WillScot Mobile Mini has been profitable over the last twelve months, which could instill confidence in investors about the company's financial health.

InvestingPro Tips suggest that WillScot Mobile Mini's management has been actively involved in share buybacks, a move that can often signal leadership's belief in the company's undervaluation. Additionally, analysts predict that the company will remain profitable this year. For those seeking more comprehensive insights, InvestingPro offers additional tips on WillScot Mobile Mini, which can be accessed with a special offer. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and discover the many other tips that can guide investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.