
United Rentals (URI) Stock Forecast & Price Target
United Rentals (URI) Analyst Ratings
Bulls say
United Rentals commands a dominant position in the equipment rental industry, holding a 16% market share in a highly fragmented sector that is experiencing substantial growth, with rental penetration in North America increasing from approximately 40% in 2003 to around 55-60% in 2022. The company is strategically enhancing its service offerings through significant acquisitions, such as GFN and Yak, which are on track to exceed their five-year growth targets, further solidifying United Rentals' ambition to become a comprehensive one-stop shop for its customers. A projected $300 million increase in rental equipment capital expenditure for 2025, alongside strong nonresidential demand and stable infrastructure-related activities, reflects the robust underlying demand trends, positioning United Rentals favorably for future growth.
Bears say
United Rentals reported a Q3 revenue of $4,229 million, reflecting a year-over-year increase of 5.9%, but the adjusted EPS of $11.70 fell short of consensus estimates, indicating potential profitability concerns. The company experienced ongoing margin pressures, with adjusted EBITDA at $1,946 million and a margin of 46.0%, slightly below estimates, driven by lower gross margins in equipment rentals and a normalization in the used equipment market. Risks such as a potential slowdown in nonresidential construction and industrial activity, coupled with challenges in integrating acquisitions, contribute to a negative outlook for the company’s financial 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
Start investing in United Rentals (URI)
Order type
Buy in
Order amount
Est. shares
0 shares