Needham & Company Cuts Price target Following Mobile Mini's (MINI) Weak 3Q

October 26, 2016 8:20 AM EDT
Get Alerts MINI Hot Sheet
Price: $29.25 -1.52%

Rating Summary:
    3 Buy, 3 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 10
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Needham & Company maintained a Buy rating on Mobile Mini (NASDAQ: MINI), and cut the price target to $34.00 (from $37.00), following the company's 3Q earnings report. MINI reported 3Q rev of $129M, Adjusted EBITDA of $46.7M, and non-GAAP EPS of $0.31. Consensus was $133M in rev, $51.6M in EBITDA and $0.37.

Analyst Sean Hannan commented, "MINI's 3Q resulted in another quarterly miss, driving notable price pressure (-16% on 10/25) for shares already trading toward the low-end of its historical range. While F/X is out of mgmt.'s control (owing to $USD/GBP post Brexit decision), we believe the internal sales productivity is within mgmt.'s control for improvement in coming qtrs. while MINI's ERP implementation should soon be nearing an end as a drag to SG&A. Further, various metrics such as activations, pricing, and endmarket conditions (not volatile) remain positive across the majority of MINI's business. Consequently, we do tweak down our target on our lowered estimates with a focus on an EV/'17 EBITDA valuation approach of ~12x (~midpoint of historical range, appropriate for a bottoming scenario), but we believe shares appear to be oversold. Reiterate Buy."

For an analyst ratings summary and ratings history on Mobile Mini click here. For more ratings news on Mobile Mini click here.

Shares of Mobile Mini closed at $24.30 yesterday.

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