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United Rentals’ analyst price target has been raised from approximately $925 to $960. Analysts cite industry stabilization, accelerating growth prospects, and increasing earnings visibility for the company.

Analyst Commentary

Recent Street research shows a series of price target increases and ratings upgrades for United Rentals, reflecting analysts' shifting perspectives amid continuing industry changes and signs of stabilization in the equipment rental sector.

• Bullish analysts have raised price targets, in some cases to over $1,100. They cite improving fundamentals and industry stabilization as key catalysts for potential share outperformance.
• Several analysts anticipate a cyclical rebound for United Rentals. Expectations are that U.S. non-residential construction spending will reaccelerate and provide stronger growth opportunities for the company.
• Improvements in rental demand and positive survey data from independent operators suggest market conditions could be bottoming. This could position United Rentals for a potential reacceleration in revenue by 2026.
• United Rentals is viewed as increasingly less capital intensive and is considered well-positioned to benefit from structural industry trends, including onshoring activities and major infrastructure investments such as data centers.

• Bearish analysts remain cautious about the impact of rising interest rates, local legal battles, and power grid constraints. These factors could cause project delays or cancellations and weigh on earnings growth.
• Lingering concerns remain regarding the pace of recovery in the broader rental market following two years of deceleration. Some view improvement as incremental rather than robust.
• The sector’s recent outperformance has been linked to policy changes and anticipation of rate cuts. This introduces potential volatility should those macroeconomic conditions shift.
• While analysts acknowledge positive trends in some areas of coverage, they warn that multiple expansion and upside to estimates may depend heavily on execution and continued visibility of forward investment.

What's in the News

• Launched two new digital tools: Smart Suggestions and Equipment Fit Augmented Reality. These tools are designed to streamline equipment selection and rental through machine learning recommendations and 3D site visualization (Key Developments).
• Raised 2025 earnings guidance, forecasting total revenue between $15.8 billion and $16.1 billion. This is an increase from the previous lower-end outlook (Key Developments).
• Completed a share repurchase of 580,672 shares totaling $418.78 million, representing 0.89% of outstanding shares between April and July 2025 (Key Developments).

Valuation Changes

• The consensus analyst price target has risen slightly from $924.70 to $960.48.
• The discount rate has decreased marginally, moving from 8.47% to 8.40%.
• The revenue growth projection has increased, now expected at 7.67% compared to the prior 7.32% estimate.
• The net profit margin forecast has declined modestly, shifting from 18.57% to 18.24%.
• The future P/E ratio has risen, climbing from 19.59x to 20.47x.