Goldman Sachs analyst Jerry Revich has maintained their bullish stance on URI stock, giving a Buy rating today.
Jerry Revich has given his Buy rating due to a combination of factors that demonstrate United Rentals’ strong performance and promising outlook despite a cautious cyclical view on the Machinery sector. United Rentals has shown a marginal EBITDA outperformance compared to consensus, which reflects higher margins, robust fleet productivity, and strong residual value recoveries. These elements contribute to the company’s ability to maintain and potentially increase its profitability over time, which is a key indicator of a solid investment.
Furthermore, Revich believes that United Rentals is strategically positioned to enhance its unit profitability in successive cycles. This is attributable to the company’s logistical cost advantage over a significant portion of the industry, potential for strategic capital deployment that can enhance value, and a flexible labor structure that allows for the adjustment of volumes. These operational efficiencies and strategic advantages provide United Rentals with a competitive edge and reinforce the rationale for the Buy rating.
Revich covers the Industrials sector, focusing on stocks such as Republic Services, United Rentals, and Westinghouse Air Brake Technologies. According to TipRanks, Revich has an average return of 11.4% and a 59.47% success rate on recommended stocks.
In another report released today, Stifel Nicolaus also maintained a Buy rating on the stock with a $750.00 price target.
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United Rentals (URI) Company Description:
United Rentals, Inc. engages in the equipment rental business. It offers rent to construction and industrial companies, manufacturers, utilities, municipalities, homeowners and government entities. The company operates through two business segments: General Rentals; and Trench, power and fluid solutions. The General Rentals segment engages in the rental of construction, aerial and industrial equipment, general tools and light equipment, and related services and activities. The trench, power and fluid solutions segment includes the rental of specialty construction products and related services. It comprises of Trench Safety region, which rents trench safety equipment such as trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers and line testing equipment for underground work, the Power and HVAC region that rents power and HVAC equipment such as portable diesel generators, electrical distribution equipment, and temperature control equipment including heating and cooling equipment, the Pump Solutions region involves in the rental of pumps primarily used by energy and petrochemical customers. United Rentals was founded by Bradley S. Jacobs in 1997 and is headquartered in Greenwich, CT.
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