WillScot downgraded to Neutral from Outperform at Baird

Baird downgraded WillScot (WSC) to Neutral from Outperform with an unchanged price target of $42. The firm says its portable storage rental survey results “weren’t great.” When combined with other macro data points, and a likely changeover of the company’s investor base from growth oriented to returns oriented, WillScot’s future multiple attainment “may be lesser than its past as its hyper growth story transitions to a hyper returns story,” the analyst tells investors in a research note. Baird believes the transition likely also increases WillScot’s cash tax bill from its historical 0% rate, penalizing future cash flow.