WSC Stock Forecast & Price Target

WillScot Holdings Corp has demonstrated a robust performance in its rental rates, with an annual increase of 9% and a quarterly gain of 3%, indicating strong demand across its offerings, particularly in higher-value solutions such as FLEX and cold storage, which have both seen significant growth of 30%. The company has experienced a resilient overall rental rate trend, suggesting the potential for margin improvement as core product volume trends are expected to rebound, benefiting overall financial returns. Furthermore, with core asset class utilization rates currently at low levels, there exists a favorable opportunity for future growth and accretion to WillScot's multiple as market conditions improve.

WillScot Holdings Corp is projected to experience a decline in earnings and EBITDA for the next year, with only a modest recovery expected by 2027, indicating ongoing financial challenges. The company has lowered its fiscal year revenue guidance to $2,260 million and reported mixed internal metrics alongside weaker than anticipated seasonal volume, which could present an EBITDA headwind of approximately $15 million in the second half of the year. Additionally, the stock is trading at the lower end of its historical valuation range, reflecting persistent market risks and a prolonged cycle of downward estimate revisions, further exacerbating negative market sentiment.