United Rentals downgraded to Underperform from Neutral at Baird

Baird downgraded United Rentals to Underperform from Neutral with a price target of $300, down from $425. The firm sees rising risks for rental and construction equipment makers. A 2024 slowdown in U.S. nonresidential construction was already on the horizon but now is increasingly likely given ongoing regional bank "turmoil and their sizable participation in commercial construction lending," the analyst tells investors in a research note. In rental, Baird says equipment supply will increase as demand is moderating. It expects multiple compression for United Rentals "to the low end of the range."