Goldman Sachs has opened coverage on EquipmentShare (EQPT) with a Buy recommendation and set a price target of $51.00, which represents an estimated 51% upside from the prevailing share price of $33.77.
EquipmentShare operates in North America as a construction equipment rental provider focused on U.S. construction and industrial end markets. The company carries a market capitalization of $8.49 billion. Recent data indicate the sector has expanded at a 6.5% compound annual growth rate over the last decade, and EquipmentShare reports a current ratio of 2.2, reflecting that liquid assets exceed near-term liabilities.
Goldman Sachs highlighted structural advantages for larger players in the construction equipment rental market after noting a trend of industry consolidation. The top-five companies' share of the market has increased from 20% in 2015 to 35% in 2025, and Goldman expects consolidation to continue, favoring scaled operators.
In its forecast, Goldman Sachs projects EquipmentShare will roughly double its rental locations over the next five years. That expansion supports the firm's view that EquipmentShare can grow at a 24% rate compared with an average peer growth rate of about 8% for the 2026 to 2028 window. On profitability, Goldman models a 24% compound annual growth rate for EBITDA through 2028 for EquipmentShare versus a 10% EBITDA CAGR for peers. The bank also expects EquipmentShare to expand its EBITDA margin profile by 1,090 basis points in 2028 relative to 2024. For the last twelve months, reported EBITDA stands at $576.7 million.
The $51 target is derived using a multiple approach, specifically 10.5 times Goldman Sachs' Q5-Q8 EBITDA estimate. The firm cited several company-level advantages for its forecasted outperformance: an attractive product offering, lower free cash flow demands stemming from a third-party financing model, and a business mix that over-indexes to mega projects and national accounts.
At the same time, other valuation assessments suggest the stock may currently trade at a premium. An independent fair-value calculation places the enterprise value to EBITDA ratio at 23.39 times. Technical indicators also point to overbought conditions based on the relative strength index. These valuation and momentum signals present counterpoints to the bullish revenue and margin projections.
Separately, EquipmentShare completed its initial public offering earlier in its market history, pricing 30.5 million shares of Class A common stock at $24.50 per share and raising $747 million. That IPO valued the company at about $7.16 billion. Shares made their Nasdaq debut at $28.50, a 16% increase over the IPO price.
Following the public listing, other firms initiated coverage as well. Baird started coverage with an Outperform rating and assigned a $63.00 price target. KeyBanc initiated coverage with a Sector Weight rating, describing EquipmentShare as the fastest-growing equipment rental company over the past decade. Both firms noted the company's innovative approach; KeyBanc specifically underscored the capital-light structure and recent gains in market share.
Takeaway: Goldman Sachs' initiation emphasizes rapid network expansion and substantial margin improvement as the rationale for a Buy rating and a $51 target, while independent valuation metrics and technical indicators indicate the stock may be trading at elevated levels. Investors should weigh the projected operational growth against current valuation and momentum signals.