Custom Truck One Source price target lowered to $7 from $8 at Oppenheimer

Oppenheimer lowered the firm’s price target on Custom Truck One Source to $7 from $8 and keeps an Outperform rating on the shares. At Oppenheimer’s Industrial Growth Conference, Custom Truck One Source highlighted its business model’s opportunity via selling/renting/servicing assets for customers in the electric utility transmission & distribution/infrastructure/rail/telecommunications end-markets. The firm notes Custom Truck One Source delivered Q1 results that were below expectations, primarily related to “fewer rental asset sales and lower rental demand from the utility end-market.” Custom Truck One Source lowered 2024 revenue/adjusted EBITDA guidance in anticipation its ERS segment “will continue to experience near-term pressure in demand in the utility market as a result of financing, supply chain, and regulatory factors affecting the timing of job starts.”