
United Rentals (URI) Stock Forecast & Price Target
United Rentals (URI) Analyst Ratings
Bulls say
United Rentals, the largest equipment rental company in the world, holds a 16% market share in a highly fragmented industry that is witnessing a shift towards rental over ownership, with rental penetration in North America increasing from approximately 40% in 2003 to around 55-60% in 2022. The company is on track to achieve its growth targets, bolstered by recent acquisitions that enhance its capacity to serve as a comprehensive one-stop shop for customers, while also demonstrating strong demand trends reflected in a $300 million increase in rental equipment capital expenditure guidance for 2025. United Rentals is also seeing robust growth in its specialty businesses, particularly in Power/HVAC, which positions the company favorably for continued revenue growth driven by nonresidential and infrastructure market demands.
Bears say
United Rentals reported Q3 revenue of $4,229 million, reflecting a 5.9% year-over-year increase that surpassed consensus forecasts; however, adjusted EPS fell short at $11.70 compared to estimates of $12.11-$12.29. The company experienced margin pressures, with adjusted EBITDA margins of 46.0% aligning with expectations but indicating a shortfall driven by lower gross margins in equipment rentals, partly due to a normalization in the used equipment market. Furthermore, risks related to potential declines in nonresidential construction activity and industrial demand, along with challenges in managing fixed costs and integrating acquisitions, have contributed to a negative outlook for the company’s future performance.
This aggregate rating is based on analysts' research of United Rentals and is not a guaranteed prediction by Public.com or investment advice.
United Rentals (URI) Analyst Forecast & Price Prediction
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