WSC: Shares Will Recover As Falling Interest Rates Support Post Q3 Bottom

The analyst price target for WillScot Holdings has been trimmed modestly to about $24.50 from roughly $24.75, as analysts balance a slightly weaker revenue growth outlook and softer margins against signs of an investable bottom, mixed but stabilizing end market demand, and potential support from lower interest rates.

Analyst Commentary

Recent Street research on WillScot presents a mixed backdrop, with several firms lowering price targets and one notable upgrade highlighting a potential turning point. The dispersion in views reflects tension between near term cyclical headwinds and longer term value and recovery potential.

Bullish Takeaways

• Bullish analysts view the latest quarter as a pivotal moment, arguing that expectations have been reset and that the stock has established an investable bottom after a multi year downturn.
• There is a belief that falling interest rates and a broader rotation toward economically sensitive names could serve as external catalysts, supporting valuation re rating potential.
• Some see meaningful value after substantial share price pressure and multiple compression since early 2024, contending that current levels already discount a cautious earnings outlook.
• Despite near term softness, bulls continue to frame WillScot as a high quality rental platform with structural growth drivers that can re accelerate when end market demand normalizes.

Bearish Takeaways

• Bearish analysts emphasize that earnings revisions remain biased lower, with weaker seasonal dynamics and softer transactional demand pressuring revenue growth and margins into 2025.
• Several cuts to price targets underscore concerns that monthly rate momentum in storage is moderating and that units on rent may not yet have definitively bottomed.
• Some caution that a meaningful share price recovery is now more dependent on a macro and construction cycle upturn, which may limit near term visibility on growth and multiple expansion.
• The near term setup is viewed as catalyst light, with limited evidence that seasonal or storage related headwinds will abate quickly. This may keep the stock range bound despite apparent valuation support.

What's in the News

• Issued updated guidance for the fourth quarter of 2025, projecting revenue of approximately $545 million, reflecting current expectations for end market conditions and seasonal retail demand (company guidance).
• Reaffirmed full year 2025 revenue outlook of about $2.26 billion, signaling confidence in demand trends despite near term cyclical pressures (company guidance).
• Reported that between July 1 and September 30, 2025, it repurchased 296,800 shares for $8.27 million, bringing total buybacks under the November 5, 2021 authorization to 49.64 million shares, or about 24.23% of shares outstanding (company buyback update).

Valuation Changes

• Fair Value: Trimmed slightly to approximately $24.50 from about $24.75 per share, reflecting modestly weaker fundamentals.
• Discount Rate: Reduced marginally from roughly 11.85% to about 11.39%, implying a slightly lower required return.
• Revenue Growth: Shifted materially lower from an expected increase of around 3.7% to an anticipated decline of roughly 2.0%.
• Net Profit Margin: Eased slightly from about 9.97% to approximately 9.87%, signaling modest pressure on profitability assumptions.
• Future P/E: Edged down marginally from roughly 26.5x to about 26.2x, indicating a slightly lower valuation multiple on forward earnings.