McGrath RentCorp

MGRC · NASDAQ

$112.03−$0.27 (−0.24%)TodayMarket closed · Oct 20, 4:05 PM ET

Prev close $112.30

MGRC analyst rating

BuyConsensus of 1 analyst over the last 12 months. 100% rate it a buy.

Strong buy0
Buy1
Hold0
Underperform0
Sell0

12-month price target · 7 analysts

Average $148.31 (+32.4% upside)

Low: $141.40
Now: $112.03
High: $157.50

Upgrades and downgrades

The latest rating actions, newest first

MGRC analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Barclays	Feb 12, 2026	Initiates	Overweight	$140.00	64%

The case for and against

Updated Apr 17, 2025

Bull case

The outlook for McGrath RentCorp's stock remains positive due to substantial growth in its Modular segment, which accounted for over two-thirds of the company's total adjusted EBITDA and experienced a 23% increase. Additionally, the Mobile Modular rental revenue has consistently expanded by 9%-10% year-over-year in recent quarters, buoyed by a notable increase in monthly revenue per unit by 18% year-over-year in 3Q24. With projected adjusted EBITDA expected to reach $350 million in 2024 and $378 million in 2025, driven by rental rate growth and a robust demand across educational and commercial sectors, the company's financial trajectory appears strong.

Bear case

McGrath RentCorp's financial outlook appears negative due to significant declines in rental revenue across its key segments, particularly the Portable Storage segment, which experienced an 11% decrease attributed to weak demand driven by lower commercial construction activity. Additionally, the TRS-RenTelco segment reported a 10% decline in rental revenue as demand weakened in the semiconductor and wireless sectors, raising concerns over consistent revenue generation. The company's expectations for continued pressure on rental revenues in the upcoming quarter further contribute to an unfavorable outlook, with indications of no anticipated improvements in demand conditions, particularly within commercial construction impacted by interest rate headwinds.

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