UPDATE: KeyBanc Capital Markets Downgrades McGrath RentCorp on Lack of Visibility
KeyBanc Capital Markets lowered its rating on McGrath RentCorp (NASDAQ: MGRC) from Buy to Hold and removed its previous $27 price target.
KeyBanc Capital Markets said, "MGRC is experiencing several near-term challenges, including transitory headwinds in its Adler Tank business stemming primarily from weakness in dry gas drilling in the Marcellus shale, persistent softness in its legacy Mobile Modular segment (especially in California) and most recently operational inefficiencies and subsequent revenue delays in its non-core Enviroplex segment (more below). While the issue at Enviroplex could dissipate over the next one to two quarters, and some early leading indicators for Mobile Modular and Adler Tanks are trending positive, we have limited visibility on when fundamentals will meaningfully recover at these two important segments. As a result, we prefer to downgrade the shares and wait for better visibility."
McGrath RentCorp closed at $26.38 on Thursday.
Latest Ratings for MGRC
|Sep 2016||Sidoti & Co.||Maintains||Buy|
|Jan 2016||Sidoti & Co.||Upgrades||Neutral||Buy|
|Nov 2015||KeyBanc||Downgrades||Overweight||Sector Weight|
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