
United Rentals (URI) Stock Forecast & Price Target
United Rentals (URI) Analyst Ratings
Bulls say
United Rentals, as the largest equipment rental company in North America, operates a substantial $21 billion fleet and holds a significant 16% market share in a highly fragmented industry, which is benefiting from increasing rental penetration, growing from approximately 40% in 2003 to an estimated 55-60% in 2022. The company is experiencing strong demand trends, as evidenced by a $300 million increase in rental equipment capital expenditure guidance for 2025, alongside positive growth in nonresidential demand and stable infrastructure-related activity. Recent acquisitions of GFN and Yak are positioning United Rentals to enhance its service offerings and achieve its goal of becoming a one-stop shop, supporting a positive outlook for continued growth in the equipment rental industry.
Bears say
United Rentals reported Q3 revenue of $4,229 million, reflecting a 5.9% year-over-year increase, but Adjusted EPS of $11.70 fell short of consensus estimates, indicating potential challenges in profitability. The company's Adjusted EBITDA margin of 46.0% was slightly below expectations, primarily due to lower gross margins in equipment rentals and pressures from a normalizing used equipment market. Furthermore, risks associated with a potential downturn in nonresidential construction activity and decelerating industrial demand raise concerns about the company’s ability to maintain its margin profile and achieve future growth targets.
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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