Deutsche Bank Reiterates Hold On H&E Equipment Services (HEES)

Deutsche Bank reiterated its Hold rating on H&E Equipment Services HEES. In a research report published today, Deutsche Bank stressed both strong Q1 revenue growth and volatility as reasons for its decision. In the report, Deutsche Bank states, "H&E reported double-digit 1Q rev growth in all segments, save New Equip, and achieved an impressive QoQ GM gain despite expected seasonality. After robust 4Q10 crane sales, cranes were particularly weak in the Qtr, underscoring the volatility and limited visibility in this later-cycle category. Mgmt sees little change in end markets and maintains a cautious outlook. While H&E will benefit from improving Rental trends, a volatile and lagged recovery in New Sales (25+% of revs) will likely weigh on results. We maintain our Hold." Deutsche Bank currently has a price target of $18 on H&E's shares. In yesterday's trading, H&E lost 8.33% to end the day at $16.39.