UPDATE: D.A. Davidson Initiates Coverage on General Finance with Buy Rating, $6 PT on Attractive Growth Profile

In a report published Wednesday, D.A. Davidson analyst Brent Thielman initiated coverage on General Finance GFN with a Buy rating and $6.00 price target.

In the report, D.A. Davidson noted, “Portable storage and modular building consolidator. General Finance Corporation (GFN) participates in the portable services industry through offerings of mobile storage, modular space, and liquid containment. Founded as a special purpose acquisition company, GFN has rapidly expanded through the consolidation of portable storage and modular building participants, boasting faster growth and higher utilization rates relative to industry peers. Cyclical and internal initiatives support future growth. We believe GFN should experience attractive momentum from an improving U.S. non-residential construction end market, which appears to be in the early stages of a multi-year recovery. Additionally, company-wide fleet expansion should support future growth prospects in the years ahead. This includes expansion in its liquid containment fleet to serve the U.S. hydrocarbon market, which offers very attractive potential over the next several years. Growth from these areas should offset some anticipated slowing in Australia tied to natural resource development.”

General Finance closed on Tuesday at $4.43.