The management meeting of WillScot Mobile Mini Holdings Corp. (WSC) confirms price strength
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Jefferies analyst Philip Ng reiterated a Buy rating and $47.00 price target on WillScot Mobile Mini Holdings Corp. (NASDAQ: WSC) after holding meetings with Tim Boswell (CFO) and walking away encouraged to learn that shipments are expected to drop 30% in 2023 to fully offset price gains, demonstrating the resilience of the business .
The analyst said: “Price visibility bolsters management’s confidence in earnings growth, even in a recession. The cost of new units has increased 40% over the past 2 years and financing costs have risen, pushing the base rate for new supply higher, and spot rates are around 30% above the WSC fleet average.The pricing benefit of the inflationary backdrop will be felt more fully as units fall apart and will have a lasting impact over the next few years as inflation stabilizes.Holding current prices stable, prices are expected to be up around 10% over the next 3 years in modular, but WSC is also targeting increases of around 25% on renewals, and that tends to hold steady given the high switching costs for existing customers.”
For an analyst rating summary and rating history on WillScot Mobile Mini Holdings Corp., click here. For more information on WillScot Mobile Mini Holdings Corp.’s ratings, click here.
Shares of WillScot Mobile Mini Holdings Corp. closed at $31.13 yesterday.
