Bullish indicating open at $55-$60, IPO prices at $37
On Monday, Wolfe Research initiated coverage on U-Haul Holding Co. (NYSE:UHAL) with a Peer Perform rating. The firm’s analyst, Andy Liu, provided insights into the company’s current market position and the challenges it faces. The $12.77 billion market cap company, currently trading at $65.18, is known for supplying products and services for moving and storage. Liu noted that U-Haul is operating in an environment where housing affordability issues and high mortgage rates pose significant challenges. According to InvestingPro data, the company’s stock shows a beta of 1.27, indicating higher sensitivity to market movements than average.
The analyst pointed out that U-Haul’s stock performance is closely linked to that of home goods retailers such as Home Depot (NYSE:HD) and Lowe’s (NYSE:LOW), which have not yet released their outlooks following Liberation Day. With a P/E ratio of 21.64 and annual revenue of $5.69 billion, the company’s financial metrics reflect this market uncertainty. This connection to the broader retail market and the lack of an updated forecast contribute to the analyst’s decision to remain cautious and assign a Peer Perform rating.
U-Haul’s business model, which is reliant on the frequency of people moving and the need for storage solutions, is particularly sensitive to economic factors that influence housing markets. InvestingPro analysis reveals the company is quickly burning through cash, with negative free cash flow, adding another layer of concern to the current macroeconomic uncertainty that has led to Wolfe Research’s cautious stance.
Wolfe Research has a policy of not providing price targets for stocks rated Peer Perform. Therefore, no price target was set for U-Haul as part of the coverage assumption. The report marks the beginning of Wolfe Research’s analysis of U-Haul under the guidance of analyst Andy Liu.
Investors and market watchers will likely keep an eye on U-Haul as it navigates through the described macroeconomic conditions, with Wolfe Research’s coverage offering a measured perspective on the company’s prospects.
In other recent news, U-Haul Holding Company announced a quarterly cash dividend of $0.05 per share on its Series N Non-Voting Common Stock. This dividend is set to be distributed on March 28, 2025, to shareholders of record as of March 17, 2025. This marks the tenth consecutive dividend issued since the company’s dividend policy was established in October 2022, highlighting U-Haul’s ongoing commitment to shareholder returns. The company emphasizes its stable financial position in the market with this announcement. U-Haul has been a staple in the moving and self-storage industry, operating a vast network across the United States and Canada. Additionally, the company is recognized as the third largest self-storage operator in North America. U-Haul’s innovative programs and extensive fleet contribute to its reputation as a leader in the industry. The information regarding the dividend was based on a press release statement from U-Haul Holding Company.
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