McGrath RentCorp initiated with an Overweight at Barclays

Barclays initiated coverage of McGrath RentCorp (MGRC) with an Overweight rating and $140 price target The firm views the company as a “relatively safer way” to play a potential cyclical recovery in U.S. non-residential construction. McGrath RentCorp’s “more conservative” approach to execution and its management of expectations “should resonate well with investors,” the analyst tells investors in a research note. Barclays views the company as top national modular solutions provider capable of delivering up to high-single-digit sales growth with upper 30’s percent margins.