Goldman Sachs Starts Sunbelt Rentals (SUNB) at Buy

Goldman Sachs analyst Suhasini Varanasi initiates coverage on Sunbelt Rentals (NYSE: SUNB) with a Buy rating and a price target of $83.00.

The analyst comments "While Sunbelt Rentals (formerly known as Ashtead Group) delivered strong growth over FY21-24 (Y/E April), it has seen a slowdown in recent years due to weakness in local commercial construction, which we believe reflects macro uncertainty and a higher interest rate environment. This has also led to a divergence in top-line performance between the company and its closest peer, URI. The company reports 3Q FY'26 results this week (Y/E April), where we expect investors to focus on the organic rental revenue growth trajectory, given the easier prior-year comparatives, and the company's ability to deliver EBITA and EPS growth. In this context, we believe a significant improvement in rates (dollar utilization), along with volume increases, would be required to drive growth which could be challenging in a weak market environment. We are Neutral rated on SUNB.L (previously AHT.L) and believe we would need to see an acceleration in top line and EPS trends before turning positive on the stock. With this note, we initiate on the US listing - SUNB - with a Neutral rating and a 12-month price target of US$83."

For an analyst ratings summary and ratings history on Sunbelt Rentals click here. For more ratings news on Sunbelt Rentals click here.

Shares of Sunbelt Rentals closed at $75.52 yesterday.

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