J.P. Morgan U.S. FTM 24 Jun 26: SUNB; Transportation & Logistics and More. Wed Jun 24 2026

Research evidence excerpt

J.P. Morgan U.S. FTM 24 Jun 26: SUNB; Transportation & Logistics and More. Wed Jun 24 2026

North America Equity Research

U.S. First to Market 24 June 2026

Top Stories

Sunbelt Rentals (Tami Zakaria, CFA) (SUNB, UW, PT $74.00)

A Tall (Margin) Order; Lowering Dec 26 PT to $74

The flattish EBITDA margin guidance for FY27 has downside, given the persistent mix headwinds; we remain

Underweight and lower PT to $74. SUNB’s F4Q EBITDA margin miss (down ~290bps excluding 1x items vs. the Street

modeling ~100bps decline YoY) was driven by mix headwinds tied to Specialty and ancillary revenues and lower delivery cost

recovery. Deconstructing the FY27 rental revenue growth guidance of 5-8%, we estimate the core rental revenue

growth is expected to be ~LTMSD%, if we assume ~2% of incremental growth will come from growth in delivery/pick-up and

other revenues (i.e., ancillary) and ~1% from the Aries acquisition.

Transportation & Logistics (Brian P. Ossenbeck, CFA)

Summer Speaker Series: Five Key Takeaways from Nine Expert Calls

Last week we hosted our ninth expert call as part of our Summer Speaker Series with industry-leading executives, economists,

and market analysts across the transportation and logistics landscape. The discussions spanned the truckload rate cycle (Dean

Croke and Chad Kennedy of DAT, Chris Pickett of Flock Freight), LTL (Curtis Garrett of Lateral), intermodal and drayage (Rick

LaGore of InTek and Vince Paperiello of STG), broker liability post-Montgomery (Greg Feary and Mike Kneller of Scopelitis),

the macro and freight backdrop (Dr. Jason Miller of Michigan State and Bob Costello of the ATA), global trade flows (Gene

Seroka of the Port of Los Angeles), and AI in logistics (Sushanth Raman of Pallet).

Mentions

J.P. Morgan Natural Resources Conference (Ken Goldman)