Analysts at Oppenheimer provided their outlook on WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) ahead of Q3 results, anticipating another strong performance.
According to the analysts, leading indicators such as the ABI point to continuing non-residential construction growth into 2023, while Infrastructure stimulus is expected commence as a tailwind in 2023.
Even should the economic environment turn less favorable, the analysts believe the company is well-positioned for continued growth considering its lengthy rental durations, rental rate growth momentum via its advanced pricing software supporting rental rate optimization/VAPS and relatively flexible cost structure.
The analysts reiterated their Q3 adjusted EBITDA estimate of $235 million (up 24% year-over-year), noting that the $241 million Street estimate also appears achievable. Their 2022/2023 adjusted EBITDA estimate were revised to $907 million (up 22% year-over-year; from $920 million) and $943 million (up 8% organically year-over-year; from $994 million), respectively. The analysts raised their price target to $48 from $46, while reiterating their outperform rating.