
United Rentals (URI) Stock Forecast & Price Target
United Rentals (URI) Analyst Ratings
Bulls say
United Rentals, as the largest equipment rental company with a 16% share in a fragmented market, has experienced a significant increase in market penetration, rising from approximately 40% rental penetration in 2003 to an estimated 55-60% in 2022, indicating a strong preference for rental solutions. The company is benefiting from structural growth tailwinds in the equipment rental industry, supported by a $300 million increase in capex guidance for rental equipment in 2025 that reflects robust underlying demand trends, particularly in nonresidential and infrastructure-related activities. Additionally, acquisitions like GFN and Yak are ahead of growth targets and have bolstered United Rentals' strategy to become a comprehensive one-stop shop, further positioning the company for sustained financial performance.
Bears say
United Rentals reported Q3 revenue of $4,229 million, showing a year-over-year increase of 5.9%, yet the Adjusted EPS of $11.70 fell short of consensus estimates, indicating potential profitability concerns. The company's Adjusted EBITDA margin decreased to 46.0%, reflecting ongoing pressure on gross margins due to the normalization of the used equipment market and a slowdown in demand arising from macroeconomic factors. Risks include a deterioration in nonresidential construction and industrial activity, coupled with challenges in executing acquisitions, which could further hamper revenue growth and margin stability.
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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