KeyBanc on Sunbelt Rentals (SUNB): 'Disappointed by Softer Margins, but Growth Story Remains Intact'

KeyBanc analyst Katie Fleischer reiterated an Overweight rating and $85.00 price target on Sunbelt Rentals (NYSE: SUNB).

The analyst commented: "Disappointed by Softer Margins, but Growth Story Remains Intact; Following SUNB's F3Q, we increase our revenue estimates and lower margin assumptions to reflect the Q's results and new guidance. While weaker margins were disappointing, we were encouraged by the updated outlook for rental revenue and fleet capex, which supports our view that SUNB is well positioned to benefit from improving momentum within the non-res. environment. Additionally, we think there could be further upside to FY27 estimates from an eventual inflection in local accounts. We expect more details on LT growth targets and margin initiatives at the upcoming investor day on March 26."

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 $69.84 yesterday.

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