Citi reiterates Buy rating on Sunbelt Rentals with $90 target

Citi analyst Kyle Menges reiterated a Buy rating and $90.00 price target on Sunbelt Rentals (NYSE: SUNB) following the company's fiscal first-quarter 2027 results.

Sunbelt Rentals reported fiscal Q1 2027 adjusted EBITDA of $1,315 million, above Citi's estimate of $1,232 million and the FactSet consensus of $1,249 million. Total revenue came in approximately 5% above Citi's model and approximately 4% above consensus, driven by equipment rental revenue. The Reliant acquisition contributed approximately 100 basis points to rental revenue growth in the quarter, while the World Cup contributed an additional 250 basis points.

Management noted rental revenue growth across its small and medium-sized customer base, with additional growth from large and strategic customers. Adjusted EBITDA margin of 42.2% was approximately 75 basis points above Citi's model.

Sunbelt Rentals raised its fiscal year 2027 total revenue guidance range by 150 basis points at the midpoint and raised its rental revenue guidance range by 200 basis points at the midpoint. The company's raised fiscal year 2027 adjusted EBITDA guidance midpoint of $5,020 million compares to Citi and FactSet consensus estimates of $4,967 million and $4,961 million, respectively.

Shares of Sunbelt Rentals closed at $69.32 in the prior session.

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