KeyBanc Capital Markets Initiates RSC Holdings Coverage (RRR)

KeyBanc Capital initiated coverage on RSC Holdings RRR today with a Buy rating and $18 price target.

In the report, KeyBanc Capital states, "Over the last cycle, we believe RRR has outperformed its peers based on several capital efficiency metrics. Moreover, we believe RRR has industry leading EBITDA margins, which have driven structurally higher EBITDA contribution margins; from 2004-2010 (excluding 2008), RRR posted an average EBITDA contribution margin of roughly 70%. In our view, solid capital efficiency and profitability metrics in the current cycle bode well not only for the rate of earnings recovery, but also valuation."

Shares of RSC Holdings were trading at $13.18 in after hours trading at the time of posting, down 0.52% from Tuesday's market close.