Oppenheimer Has Outperform On Mobile Mini (MINI)

Oppenheimer & Co. has an Outperform rating and a $28 price target on shares of Mobile Mini MINI. In a note to clients, Oppenheimer writes, "We recently met with CFO Mark Funk and continue to view MINI as well positioned to drive elevated incremental margins as it leverages increasing economic activity and new locations. MINI is a high quality cyclical given the: 1) long useful/depreciable life; 2) lengthy average rental duration; and 3) strong cash flow profile of its core storage container assets. Consistent with 2009/2010, we anticipate 2011/2012 FCF will exceed 20% of revenue as current mid-50s utilization remains well below peak 80%+ levels. Maintaining our 1Q11E EPS of $0.10 (+12% y/y), consensus of $0.13 may be challenging to surpass given seasonality. However, with 1Q11E EPS just 12% of an anticipated strong $0.80 (+50% y/y) in 2011E, we reiterate our Outperform rating." Shares of MINI gained 62 cents yesterday to close at $24.10, a gain of 2.6%.