CTOS Stock Sees Analyst Upgrade and Price Target Rise to $7.00

Stifel analyst Brian Brophy has upgraded Custom Truck One Source (CTOS) to a "Buy" rating from a previous "Hold", raising the target price by 40% to $7.00. The average target price from 5 analysts is $6.20, with an upside of 6.16% from the current price of $5.84. The estimated GF Value for CTOS in one year is $7.65, suggesting a 30.99% upside.

Stifel analyst Brian Brophy has upgraded Custom Truck One Source (CTOS) to a "Buy" rating from a previous "Hold," raising the target price by 40% to $7.00. This significant upgrade comes amidst improving trends in equipment availability and rental utilization, particularly in the Transmission and Distribution (T&D) market. The average target price from five analysts is $6.20, with an estimated upside of 6.16% from the current price of $5.84. The estimated GF Value for CTOS in one year is $7.65, suggesting a 30.99% upside.

The upgrade was prompted by Stifel's survey indicating a tightening of equipment availability in the second quarter of 2025, a marked improvement from the previous quarter. This trend reflects better rental utilization, particularly in the crucial T&D market. Additionally, Stifel noted increased optimism around orders for Truck Equipment Sales (TES) over the last two quarters, further bolstering its positive outlook on the company's earnings potential [1].

Despite a recent earnings miss, Custom Truck One Source reaffirmed its full-year 2025 guidance, projecting revenue between $1.97 billion and $2.06 billion and adjusted EBITDA between $370 million and $390 million. The company continues to focus on strategic investments in its rental fleet to drive growth, despite facing challenges such as segment gross margin pressure and economic uncertainty due to evolving US tariff policies [2].

Stifel's upgrade aligns with a bullish consensus among analysts, with price targets ranging from $4.50 to $7.50. The average target price is $5.80, implying an upside of 12.62% from the current price of $5.15. Custom Truck One Source's stock has shown strong momentum, with a 15.5% return over the past year [3].

References:
[1] https://finance.yahoo.com/news/custom-truck-one-source-ctos-173607366.html
[2] https://www.investing.com/news/analyst-ratings/custom-truck-one-source-stock-rating-upgraded-by-stifel-on-improving-equipment-availability-93CH-4134876
[3] https://www.ainvest.com/news/stifel-raises-pt-7-custom-truck-assumes-buy-rating-2507/