Berenberg Bank analysts provided their views on WillScot Mobile Mini Holdings (NASDAQ:WSC), viewing the company as undervalued. The analysts increased their price target on the company’s shares to $50 from $46, while maintaining their buy rating.

With shares up 71% since January 2021 and no obvious near-term catalysts, the analysts believe many are beginning to question whether there is still further upside in the name. While the stock is optically expensive on traditional valuation metrics, the analysts think the company is still significantly underearning relative to its invested capital base.

Since de-SPACing in 2017, the company has enjoyed strong positive earnings momentum, driven by the company’s operational improvements and M&A. The analysts expect this pattern of positive earnings revisions to continue as the company’s 2022 outlook appears conservative. The analysts believe the setup is favorable for the company to beat and raise in its upcoming quarters.