As previously reported, Bernstein initiated coverage of Sunbelt Rentals with an Outperform rating and $86 price target, implying 20% upside to Monday's share price. The trough of the U.S. construction market appears to have passed, with no further deterioration evident across Local/SME markets, the firm notes. Given Sunbelt's over-indexation to these end markets, in the event of a market turnaround, historic results show an organic growth outperformance of three times versus the market.
