What Happened?
Shares of heavy equipment distributor Custom Truck One Source (NYSE: CTOS) jumped 11.7% in the afternoon session after an upgrade from Wall Street firm Stifel, which boosted its rating on the stock to Buy from Hold and raised its price target.
Stifel lifted its price target on the specialized equipment provider to $7.00 per share from a previous $5.00, suggesting significant upside from its recent trading levels. The upgrade was prompted by a Stifel survey indicating improving trends for equipment availability in the second quarter. The firm believes the tightening availability points to better rental utilization for Custom Truck's equipment, particularly in the crucial Transmission and Distribution (T&D) market. Stifel also noted increased optimism around orders for Truck Equipment Sales (TES) over the last two quarters, further bolstering its positive outlook on the company's earnings potential.
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What Is The Market Telling Us
Custom Truck One Source’s shares are extremely volatile and have had 34 moves greater than 5% over the last year. But moves this big are rare even for Custom Truck One Source and indicate this news significantly impacted the market’s perception of the business.
Custom Truck One Source is up 18.6% since the beginning of the year, and at $5.74 per share, it is trading close to its 52-week high of $6 from November 2024. Investors who bought $1,000 worth of Custom Truck One Source’s shares 5 years ago would now be looking at an investment worth $1,386.
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