KeyBanc Downgrades RSC Holdings (RRR) to Hold; Deal a Solid Near and Long-Term Positive for URI

KeyBanc downgraded RSC Holdings (NYSE: RRR) from Buy to Hold.

KeyBanc analyst says, "In our view, United Rentals, Inc.'s (NYSE: URI) pending acquisition of RSC Holdings Inc. is broadly positive for URI and the equipment rental industry. Given our expectation that the proposed acquisition will close in 1H12 without additional bidders, we are downgrading RRR to HOLD. As it pertains to URI, we believe the acquisition provides URI with significant near- and long-term positives, both operationally and financially. With respect to the former, we view RRR as the "best in class" and although URI has made significant operational progress, closing the gap with RRR, we believe the potential acquisition provides URI with improved customer facing systems (Total Control), a less cyclical customer mix (more industrial) and a more lucrative margin/return profile."

KeyBanc raises price target on URI from $28 to $34.

For an analyst ratings summary and ratings history on RSC Holdings click here. For more ratings news on RSC Holdings click here.

Shares of RSC Holdings closed at $17.95 yesterday.

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