NEW YORK, April 12 (Reuters) - RSC Holdings Inc RRR.N, which rents out forklifts, backhoes and cranes, has no exposure to the residential housing market and is well-positioned to benefit from a rise in infrastructure spending that could result from the Obama administration’s economic stimulus plan, Barron’s said.
The second-largest player in the business of supplying heavy equipment to the construction industry, has annual revenue of $1.8 billion, Barron’s said in its April 13 edition. It has one of the safest, newest and best maintained fleets of construction equipment in the industry, Barron’s said.
Erik Olsson, the company’s chief executive, said that when demand rebounds, construction companies will prefer to rent rather than buy equipment because credit for purchases will still be tight, Barron’s said.
Meanwhile, Morgan Stanley analyst Vance Edelson said the stock could more than triple over the next 12 to 18 months to $16.
Bulls like that the company gets more than 60 percent of its sales from rentals tied to maintenance and repairs, up from 35 percent three years ago, Barron’s said.
Reporting by Ilaina Jonas; Editing Bernard Orr