KeyBanc Capital Markets Initiates H&E Equipment Services Coverage (HEES)

KeyBanc Capital Markets initiated H&E Equipment Services (NASDAQ: HEES) coverage today, giving H&E Equipment Services a Hold rating.

In a report, KeyBanc states, "Historically, HEES's Equipment Rental and Service segments have been the primary contributors to gross profit, driving 62% of the total from 2006-2010. Additionally, Equipment Rental and Service have exhibited the highest incremental gross profit margins at 56% and 67%, respectively, over the same period. Accordingly, we think a recovery in these businesses is paramount to future earnings growth. Generally speaking, our expectations for fundamentals in both businesses are favorable; however, we anticipate the pace of improvement in Equipment Rental to exceed the recovery in Service."

Shares of H&E Equipment Services closed Tuesday at $17.10, down 3.01% from Monday's market close.

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