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UHAL: Upgrading AMERCO to OUTPERFORM and increasing target to $190.

By Ian Gilson, PhD, CFA

AMERCO's (NasdaqGS:UHAL) common stock has reached valuations higher than ever before. As shown on page 8 the high price to EBITDAL ratio reached 4.02, during a period when the stock market averages reached record highs. Based on our latest forecasts, and assuming somewhat lower valuations, our target price is $190 a share.

The stock has usually been valued on EBITDAL (EBITDA plus lease expense) per share, selling between two and three times EBITDAL. Based on our estimates for the 2014  EBITDAL of $48 a share, we would expect a price of $190 a share.


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