Oppenheimer Raises PT on RSC Holdings to $16 (RRR)

Oppenheimer is out with its report on RSC Holdings RRR, raising its PT from $15 to $16. In a note to clients, Oppenheimer writes, "We're boosting our 2011 revenue/EBITDA estimates to $1.408B/$500M given tangible indications of improving pricing and leading indicators suggesting a turn in the non-residential construction cycle. Our 2011E EPS improves to -$0.09 from -$0.29. For 2012E, our revenue/EBITDA/EPS increase to $1.549B/$588M/$0.48 from $1.462B/$552M/$0.25. RRR is currently trading at 6.7x our 2011E EBITDA. We're increasing our PT from $15 to $16, which represents 7.4x our 2011E EBITDA (historical 4-8x FTM EV/EBITDA range as it recently troughed) and is based on a conservative EV/EBITDA multiple of 5.5x on $750M of EBITDA in 2014E, discounted to 2011 at 12%." Oppenheimer maintains Outperform on RRR. Shares of RRR closed yesterday at $12.69, down 0.94% from Monday's close.