United Rentals’ Strategic Expansion in Specialty Rentals Justifies Hold Rating Amid Market Challenges

Bernstein analyst Chad Dillard maintained a Hold rating on United Rentals (URI – Research Report) today and set a price target of $666.00.

Chad Dillard’s rating is based on United Rentals’ strategic focus on expanding its specialty rental business, which is currently less penetrated compared to its general rental segment. The company aims to achieve a specialty revenue target of $7 billion by 2028, driven by increased job site productivity and compliance with safety regulations. United Rentals is leveraging its engineering expertise to enhance trench safety and is expanding its matting solutions and tool rental offerings to meet market demand.
Another factor influencing the Hold rating is United Rentals’ ability to differentiate itself through cross-selling, advanced technology integration, and unique service offerings. Despite these strengths, the company’s market performance is tempered by challenges such as the under-penetration of industrial segments and the need to navigate a shortage of industrial properties. These factors contribute to a balanced outlook, justifying the Hold rating while maintaining a price target of $666.

In another report released on May 16, UBS also upgraded the stock to a Hold with a $780.00 price target.

Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of URI in relation to earlier this year.