Deutsche Bank Initiates Coverage on Mobile Mini (MINI) with a Hold

November 6, 2008 7:39 AM EST

Deutsche Bank initiates coverage on Mobile Mini (Nasdaq: MINI) with a Hold. Price target $18.

Deutsche analyst says, "Cautious outlook on signs of downturn in non residential construction...We are initiating coverage of portable storage provider Mobile Mini due to a worsening outlook for non residential construction and a weak economic environment. We rate the stock a Hold as synergies from the recent Mobile Storage Group merger are already reflected in shares and due to the lack of a positive catalyst -at least until the merger provides significantly improved leverage and returns...Non residential construction, which includes building categories such as hotels, hospitals, and schools, is a key end market for MINI and accounts for over 40% of total revenues. Based on increasingly pessimistic signs from a leading indicator and worsening industry forecasts and company data, we expect a 5-8% contraction in non residential construction in 2008 as well as a contraction in 2009."

Mobile Mini, Inc. is a provider of portable storage solutions in the United States, through its total lease fleet of 160,100 portable storage and portable office units as of December 31, 2007.

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