Herc Holdings downgraded to Sector Weight from Overweight at KeyBanc

KeyBanc downgraded Herc Holdings to Sector Weight from Overweight without a price target. Keybanc’s spot rental rate scrapes indicate plateauing pricing for equipment rental companies and downward trends in other forward-looking nonresidential indicators, the analyst tells investors in a research note. The firm thinks it could be difficult to maintain positive nonresidential construction start trends into 2024, particularly as forward-looking nonresidential indicators have begun to show sharp decelerations in recent months. It thinks growth expectations “may already be well reflected in out-year multiples” of the shares.