B. Riley bullish on H&E Equipment, initiates with a Buy

As previously reported, B. Riley analyst Alex Rygiel initiated coverage of H&E Equipment with a Buy rating and $53 price target. H&E Equipment is a large U.S.-based heavy construction and industrial equipment rental company that the analyst believes is positioned to benefit from favorable infrastructure trends and federal stimulus. After the sale of two dealership branches in Arkansas and the divestiture of its crane business in 2021, H&E Equipment became a mostly pure-play equipment rental company focused on growing its branch network both organically and through acquisitions, Rygiel notes. As investors gain a greater appreciation for the company’s organic and acquisitive growth initiatives and predominate focus on nonresidential and industrial markets, the analyst believes valuation multiple expansion is possible.