) to strong buy from buy.
Analyst Ian Gilson says under AMERCO's bankruptcy plans, the interest rates on old debt will be adjusted to current market rates. He says unsecured debt will become secured, and maturities will be extended. Gilson notes AMERCO will have $300 million in new financing, but with no asset liquidation involved and no impact to stockholders' equity. He says the trailer and storage rental company is worth significantly more than its current stock price, and says the stock has significant upside potential.
Gilson believes the business is strong. He says AMERCO has a positive cash flow, and says its lines of credit won't have to be used during the first quarter and second quarter. He sees a 36-cent fourth-quarter loss, and $1.44 earnings per share for fiscal 2003 (Mar.), as well as $3.46 earnings per share for fiscal 2004. Gilson has a $10 target.