WillScot Mobile Mini Holdings Corp. (WSC) Management Meeting Confirms Pricing Strength - Jefferies

Jefferies analyst Philip Ng reiterated a Buy rating and $47.00 price target on WillScot Mobile Mini Holdings Corp. (NASDAQ: WSC) after hosting meetings with Tim Boswell (CFO) and walking away encouraged to hear deliveries would need to be down 30% in 2023 to fully offset the pricing gains, showcasing the resiliency of the business.

The analyst stated "Visibility in pricing is driving mgmt's confidence in earnings growth even in a recession. The cost of new units is up 40% over the last 2 years & financing costs have moved higher, pushing the base rate for new supply up, and spot rates are ~30% above WSC's fleet avg. The pricing benefit of the inflationary backdrop will come through more fully as units churn, and will have a lasting impact the next few years as inflation stabilizes. Just holding current prices steady, pricing should be up ~10% the next 3 years in modular, but WSC is also targeting ~25% increases on renewals, and this tends to be sticky given the high switching costs for existing customers."

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

Shares of WillScot Mobile Mini Holdings Corp. closed at $31.13 yesterday.

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