Credit Suisse Downgrades RSC Holdings to Neutral, Raises PT to $18

Credit Suisse downgrades RSC Holdings RRR from Outperform to Neutral as it does not see any prospective bids from other strategic partners. It raises its price target from $13 to $18 per share as it believes the the company will ultimately combine with United Rentals URI. Credit Suisse says, "While possible, we do not find it likely there will be an increased bid from another strategic purchaser, ultimately resulting in RSC's combination with United Rentals (URI). Our new $18 target price for RSC Holdings assumes an EV/EBITDA (Enterprise Value to Earnings Before Interest, Taxes, Depreciation and Amortization) multiple of 5.5x our 2013 EBITDA estimate, discounted back. This multiple is in line with the historical average." RRR closed at $17.95 per share on Friday.