Street Calls of the Week
Investing.com - Stifel raised its price target on Custom Truck One Source (NYSE:CTOS) to $8.00 from $7.00 on Thursday, while maintaining a Buy rating on the specialty equipment provider. The company, with a market capitalization of $1.42 billion, has delivered impressive returns with its stock price surging over 100% in the past year, according to InvestingPro data.
The price target increase reflects Stifel’s positive outlook on the company’s third-quarter rental results, based on recent market survey data showing tightening equipment availability.
Survey results indicated a net 9% of respondents experienced tighter equipment availability in the third quarter of 2025, compared to just 2% reporting tighter conditions in the second quarter.
The year-over-year improvement is particularly notable, as the same survey showed a net 12% of respondents had reported looser equipment availability a year ago.
Stifel believes this tightening in equipment availability signals improved rental utilization trends in the transmission and distribution (T&D) market, which represents a key segment for Custom Truck One Source’s business.
In other recent news, Custom Truck One Source reported a strong second quarter for 2025, with revenue reaching $512 million, surpassing the consensus estimate of $467 million. This marks a 21% year-over-year growth, primarily driven by the Truck and Equipment Sales segment and improving trends in Transmission and Distribution. Despite the impressive revenue figures, the company reported an earnings per share of -$0.13, which did not meet the forecasted -$0.05. Stifel maintained its Buy rating and a $7.00 price target following the results, highlighting the company’s robust performance. Meanwhile, DA Davidson increased its price target to $8.00 from $7.50, citing healthy performance across rental key performance indicators, truck sales, orders, and margins. However, JPMorgan downgraded the stock from Neutral to Underweight, adjusting its price target to $5.50 due to a weak truck sales outlook. These developments reflect a mixed sentiment among analysts regarding the company’s future performance.
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