Oppenheimer reinstated coverage of McGrath RentCorp (MGRC) with an Outperform rating and $120 price target. The firm notes that on September 18, following an FTC review, WillScot Holdings (WSC) discontinued its attempt to acquire McGrath. Correspondingly, McGrath is receiving a $180M cash termination fee from WillScot. Oppenheimer is constructive on McGrath’s fundamental story. Its core Mobile Modular segment benefits via its leadership in modular classroom rentals and from manufacturing re-shoring tailwinds/infrastructure bill funds flowing. Non-residential construction represents a cyclical headwind currently. However, a lower interest rate environment could potentially become beneficial as soon as 2025, the firm adds.
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- McGrath RentCorp Refocuses Strategy Post-Merger Termination
- McGrath RentCorp to receive $180M following termination of WillScot merger
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