Custom Truck One Source initiated with a Hold at Stifel

Stifel analyst Brian Brophy initiated coverage of Custom Truck One Source with a Hold rating and $5.50 price target. As a leading provider of specialty trucks and equipment, the firm views the “one-stop-shop business model” across rental, equipment sales, and aftermarket as a key competitive advantage and also believes its scale and manufacturing capabilities give the company a structural cost advantage relative to peers. However, the firm is cautious in the near term given softer truck and equipment order trends in recent quarters that it believes could create a “reset” in 2025 expectations in the absence of improved order trends.