Gold prices slip slightly after recent gains; U.S. data eyed
Investing.com - DA Davidson raised its price target on Custom Truck One Source (NYSE:CTOS) to $8.00 from $7.50 on Monday, while maintaining a Buy rating on the specialty equipment provider. The new target represents a significant upside from the current price of $5.99, with InvestingPro data showing analyst targets ranging from $6.00 to $9.00.
The price target increase follows Custom Truck One Source’s second-quarter 2025 earnings report, which showed healthy performance across rental key performance indicators, truck sales, orders, and margins. The company’s strong execution is reflected in its impressive 51.35% return over the past year and 6.21% revenue growth.
DA Davidson noted that the company appears positioned for double-digit EBITDA growth, which analysts consider the base-case scenario extending into 2026.
The firm highlighted Custom Truck One Source’s ongoing balance sheet improvements, with the company targeting a leverage ratio of 3.0x by the end of 2026. Approximately 78% of the company’s outstanding debt is covered by the orderly liquidation value of its fleet.
DA Davidson continues to recommend Custom Truck One Source as a "solid long-term holding" as the transmission and distribution and infrastructure segments experience growth. The company’s market capitalization stands at $1.36 billion, positioning it as a notable player in the specialty equipment sector.
In other recent news, Custom Truck OneSource reported its earnings for the second quarter of 2025, showcasing a notable revenue increase that exceeded expectations. The company achieved a revenue of $511 million, representing a 21% growth compared to the previous year. Despite this, the earnings per share (EPS) stood at -$0.13, which did not meet the forecasted -$0.05. This revenue surprise, however, led to a positive response in the market. While the company’s stock rose, it’s important to note that the revenue figures were the primary driver of investor optimism. These developments highlight the importance of revenue performance in investor sentiment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.