In a report released today, Philip Ng from Jefferies maintained a Hold rating on WillScot Mobile Mini Holdings, with a price target of $23.00.
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Philip Ng has given his Hold rating due to a combination of factors impacting WillScot Mobile Mini Holdings. The company is experiencing weaker seasonal demand for retail storage units, which is influenced by a softer macroeconomic environment and increased competition from regional players. This seasonal business is inherently variable and closely tied to consumer confidence and holiday purchasing trends, leading to a slower-than-expected procurement process this year.
While the company’s shares are currently undervalued, trading at a low EV/EBITDA multiple, and offering a substantial free cash flow yield, there is a lack of immediate catalysts to drive the stock price higher. The company’s modular and enterprise accounts are showing some growth, but the overall storage business remains soft with transactional demand being slow to recover. As a result, Ng anticipates continued pressure on the company’s financial performance, with EBITDA expected to fall below the lower end of guidance, and storage utilization rates remaining low. Until investors gain confidence that utilization rates have stabilized, the stock is likely to remain under pressure.
Based on the recent corporate insider activity of 53 insiders, corporate insider sentiment is neutral on the stock.