William Blair analyst Tim Mulrooney has maintained their neutral stance on WSC stock, giving a Hold rating yesterday.
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Tim Mulrooney’s rating is based on several factors, primarily focusing on the challenges faced by WillScot Mobile Mini Holdings due to declining trends in nonresidential construction starts. The Dodge August Nonresidential Construction Summary indicates a 2% year-over-year decrease in square-footage starts, with a more significant 13% drop on a month-over-month basis. These figures are worse than the historical seasonal averages, suggesting a challenging environment for the company.
Given the current trajectory, nonresidential starts are projected to decline by 7% compared to 2024, which is a downward revision from the previous estimate of a 1% decrease. This anticipated reduction in construction activity could impact WillScot Mobile Mini Holdings’ business, prompting Tim Mulrooney to adopt a cautious stance and issue a Hold rating. The uncertainty surrounding future construction trends and their potential impact on the company’s performance underpins this recommendation.
Mulrooney covers the Industrials sector, focusing on stocks such as WillScot Mobile Mini Holdings, Comfort Systems, and EMCOR Group. According to TipRanks, Mulrooney has an average return of 13.0% and a 64.94% success rate on recommended stocks.
In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $22.00 price target.