
McGrath RentCorp (MGRC) Stock Forecast & Price Target
McGrath RentCorp (MGRC) Analyst Ratings
Bulls say
The outlook for McGrath RentCorp's stock remains positive due to substantial growth in its Modular segment, which accounted for over two-thirds of the company's total adjusted EBITDA and experienced a 23% increase. Additionally, the Mobile Modular rental revenue has consistently expanded by 9%-10% year-over-year in recent quarters, buoyed by a notable increase in monthly revenue per unit by 18% year-over-year in 3Q24. With projected adjusted EBITDA expected to reach $350 million in 2024 and $378 million in 2025, driven by rental rate growth and a robust demand across educational and commercial sectors, the company's financial trajectory appears strong.
Bears say
McGrath RentCorp's financial outlook appears negative due to significant declines in rental revenue across its key segments, particularly the Portable Storage segment, which experienced an 11% decrease attributed to weak demand driven by lower commercial construction activity. Additionally, the TRS-RenTelco segment reported a 10% decline in rental revenue as demand weakened in the semiconductor and wireless sectors, raising concerns over consistent revenue generation. The company's expectations for continued pressure on rental revenues in the upcoming quarter further contribute to an unfavorable outlook, with indications of no anticipated improvements in demand conditions, particularly within commercial construction impacted by interest rate headwinds.
This aggregate rating is based on analysts' research of McGrath RentCorp and is not a guaranteed prediction by Public.com or investment advice.
McGrath RentCorp (MGRC) Analyst Forecast & Price Prediction
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