NEW YORK (TheStreet) -- Mobile Mini
(MINI - Get Report) had coverage initiated with a "buy" rating and a $52 price target by analysts at Deutsche Bank on Monday.
The firm's price target represents a 23% upside from the company's closing price on Friday.
TheStreet Ratings team rates MOBILE MINI INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate MOBILE MINI INC (MINI) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income."Highlights from the analysis by TheStreet Ratings Team goes as follows:
- MINI's revenue growth has slightly outpaced the industry average of 3.8%. Since the same quarter one year prior, revenues slightly increased by 5.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.59, is low and is below the industry average, implying that there has been successful management of debt levels.
- Compared to its closing price of one year ago, MINI's share price has jumped by 34.01%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- MOBILE MINI INC's earnings per share declined by 38.5% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, MOBILE MINI INC reported lower earnings of $0.53 versus $0.76 in the prior year. This year, the market expects an improvement in earnings ($1.16 versus $0.53).
- Net operating cash flow has remained constant at $26.81 million with no significant change when compared to the same quarter last year. This quarter, MOBILE MINI INC's cash flow growth rate has remained relatively unchanged and is slightly below the industry average.
- You can view the full analysis from the report here: MINI Ratings Report