United Rentals price target lowered to $498 from $505 at Stifel

Stifel analyst Stanley Elliott lowered the firm’s price target on United Rentals to $498 from $505 and keeps a Buy rating on the shares. The company’s Q1 results were ahead of expectations, which benefitted from strong used equipment sales, the analyst tells investors. Specialty growth remained healthy, opening six locations and on track for 40 cold starts for the year. Increased specialty mix is a tailwind for organic growth, profitability, and valuation multiple, Stifel says. The firm remains positive on the shares overall because it believes the company is positioned to benefit from a backlog of "mega projects" while commercial construction exposure is relatively contained.