United Rentals initiated with an Overweight at JPMorgan

JPMorgan initiated coverage of United Rentals with an Overweight rating and $780 price target. The equipment rental industry is expected to be a key beneficiary of multi-year non-residential and infrastructure projects in the U.S., the analyst tells investors in a research note. The firm says United Rentals’ scale should drive above industry-average growth and returns. The company’s scale benefits are evident in higher per unit economics relative to peers, and its sales should outgrow the industry’s growth over the long term, contends JPMorgan.