Mcgrath Rentcorp (MGRC) Gets a Hold Rating from Oppenheimer


Oppenheimer analyst Scott Schneeberger maintained a Hold rating on Mcgrath Rentcorp (NASDAQ: MGRC) today. The company’s shares closed yesterday at $47.87.

Schneeberger said:

“3Q18 EPS of $1.01 (+46% y/y) exceeded our estimate/consensus of $0.86/$0.90, respectively. Total revenue/rental revenue of $143M (+6% y/y)/$82M (+11% y/ y) compared favorably to our estimates of $139M ($140M consensus)/$78M, respectively. Mobile Modular continued ramping in 3Q18, growing rental revenue 14% y/y. Tanks grew rental revenue 6%/13% y/y, for their fifth/seventh consecutive quarter of y/y growth, respectively. 3Q18 adjusted EBITDA of $57.3M (+13% y/y) topped our $53.1M estimate as MGRC scaled solid revenue growth across its cost structure. The strong 3Q18 and a favorable 4Q18 outlook prompted an increase to 2018 operating income growth guidance from 11-15% to 18-21% y/y. Trending above our original 2018 rental revenue growth expectation, MGRC is positioned to perpetuate its current momentum into 2019.”

According to TipRanks.com, Schneeberger is a 5-star analyst with an average return of 9.9% and a 62.9% success rate. Schneeberger covers the Services sector, focusing on stocks such as Service Corp International, General Finance, and XPO Logistics.

Currently, the analyst consensus on Mcgrath Rentcorp is a Moderate Buy with an average price target of $70.

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The company has a one-year high of $68.79 and a one-year low of $42.98. Currently, Mcgrath Rentcorp has an average volume of 111K.

Based on the recent corporate insider activity of 58 insiders, corporate insider sentiment is negative on the stock.

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McGrath RentCorp engages in the management of diversified business to business rental providers. It operates through the following segments: Mobile Modular, TRS-RenTelco, Adler Tanks, and Enviroplex. The Mobile Modular segment operates four inventory center, at which relocatable modular buildings and storage containers are displayed, refurbished, and stored.

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