EquipmentShare (EQPT) can sustain an elevated organic growth profile, supported by its differentiated telematics platform and third-party equipment funding model, Oppenheimer said in a note Tuesday.

The brokerage said EquipmentShare has rapidly grown over the past decade to become the fourth-largest competitor in the $84 billion US equipment rental industry. The company's primary differentiator is its T3 telematics offering, which provides customers with real-time operational asset data.

The investment firm said its third-party equipment ownership structure OWN-program allows the company to expand its rental fleet using investor capital without overextending its balance sheet. The model enables EquipmentShare to manage rentals while outside investors fund equipment purchases.

Oppenheimer expects the company to continue outpacing the broader US equipment rental industry, projecting revenue and base earnings before interest, taxes, depreciation and amortization, or EBITDA, compound annual growth rates of 23% and 32% over fiscal 2026 and 2027.

The brokerage also said EBITDA margins are expected to expand by several hundred basis points over the next few years, as equipment rental investment-related operating expense growth moderates.

Oppenheimer initiated coverage with an outperform rating and a $39 price target.

Shares of EquipmentShare were down 2.5% in recent trading.

Price: 32.91, Change: -0.86, Percent Change: -2.55