Enter multiple symbols separated by commas

H&E Shares Gain Following Analyst Upgrade

Shares of H&E Equipment Services surged Monday on expectations results will be boosted by a strong demand for its cranes and its presence in the Gulf Coast region.

Banc of America Securities analyst Seth Weber upgraded his rating on shares of the industrial machinery rental outfit to "buy" from "neutral," highlighting the stock's 15% decline since the start of the year.

"We expect H&E to recover from recent lows on evidence of continued strength of its non-residential construction markets," Weber wrote in a note to clients.

"H&E is a well positioned non-residential construction play, given its participation in the late-cycle crane segment, footprint, and a secular shift to the rental channel."

Weber said H&E's crane segment accounts for an estimated 30% of revenue.

At the same time, the company's Gulf Coast presence provides possible additional opportunities for petrochemical, oil patch and hurricane reconstruction activity, the analyst said.

Weber maintained his earnings estimates and $29 price target on the stock, but added that a reacceleration of Gulf Coast reconstruction funding efforts could boost the company's future results.

Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • Lottery ticket

    A thief who broke into the car of a Seattle couple left behind a million-dollar lottery ticket, NBC News reports.

  • The Lamborghini SpA Urus SUV.

    There's no shortage of luxury vehicle choices, but increasingly the wealthy are opting for high-end SUVs instead of traditional models.

  • Mike Trout #27 of the Los Angeles Angels takes a picture with fans before a game with Boston Red Sox at Fenway Park on May 23, 2015 in Boston, Massachusetts.

    MLB is using digital media initiatives like Snapchat and Web video to connect with younger viewers. Is it enough?

U.S. Video

  • Cramer: Here's the no. 1 play in cybersecurity

    Guarding Your Portfolio? "Mad Money" host Jim Cramer's got the number one pick for protection services in today's digital world.

  • Underestimate Cisco at own peril: Cramer

    Mad Money's Jim Cramer takes a look at the cybersecurity space to see if it could also protect your money.

  • Fly with LUV?

    While remaining profitable, Gary Kelly, Southwest Airlines chairman and CEO, tells Mad Money's Jim Cramer the company continues to focus on being a great airline and offering great customer service.