United Rentals price target lowered to $450 from $500 at Citi

Citi analyst Timothy Thein lowered the firm’s price target on United Rentals to $450 from $500 and keeps a Buy rating on the shares. The analyst reduced price targets for machinery companies with high relative non-residential exposure. The firm sees a difficult competitive backdrop as the market digests capacity additions that likely add to downside pricing risk. However, Citi expects United Rentals’ organic growth to be more resilient than prior downturns on account of a more diversified end market mix, and a shallower decline in rental rates and time utilization.