Update shared on 01 Dec 2025
Fair value Decreased 0.16%United Rentals' analyst price target saw a modest decrease of $1.67 to $1,025.47. Analysts noted broadly positive secular demand trends, but cited mixed views on near-term growth and profitability following the latest forecast updates.
Analyst Commentary
Recent Street research on United Rentals highlights a mix of optimism and caution, with analysts divided on the company’s near-term momentum and long-term positioning. The following summarizes the key bullish and bearish themes driving recent rating and price target changes:
Bullish Takeaways- Bullish analysts point to continued record revenue and adjusted EBITDA performance, supported by broad exposure to high-growth sectors such as data centers, hospitals, and manufacturing.
- Favorable supply chain dynamics and policy-driven tailwinds, including infrastructure investment and industrial onshoring, are expected to drive robust equipment demand.
- Recent coverage initiations emphasize the company’s appealing unit profitability growth and underlying industry strength, contributing to attractive relative valuation levels.
- Several analysts have increased price targets, citing an anticipated reacceleration in the rental market and sector stabilization. The company is viewed as well positioned to benefit from cyclical rebounds.
- Bearish analysts note margin pressures, particularly as adjusted EBITDA margins have declined year over year, raising concerns about near-term profitability despite strong top-line growth.
- Some express caution over slower sector growth, highlighting that share valuations have partially re-rated due to one-time policy benefits. Underlying structural changes are seen as carrying execution risks.
- After recent quarterly results, certain analysts have trimmed their price targets, citing mixed views on the company’s ability to sustain above-average demand and consistent growth in a challenging macro environment.
What's in the News
- Citi raised its price target on United Rentals to $1,140 from $1,130 while maintaining a Buy rating, citing updated Q3 guidance and a slightly higher valuation multiple (Periodical).
- United Rentals updated its full-year 2025 earnings guidance, increasing its total revenue outlook to a range of $16.0 billion to $16.2 billion from the previous $15.8 billion to $16.1 billion (Key Developments).
- The company completed a share buyback tranche by repurchasing 687,660 shares worth $616.64 million between July and September 2025. This brings the total buyback under the April 2025 announced program to 1,283,475 shares valued at $1,033.33 million (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has edged down slightly, declining from $1,027.14 to $1,025.47.
- Discount Rate has increased modestly, moving up from 8.54% to 8.56%.
- Revenue Growth projections have remained stable, with a minimal rise from 7.07% to 7.07%.
- Net Profit Margin has improved slightly, increasing from 18.16% to 18.18%.
- Future P/E ratio has decreased fractionally, falling from 21.38x to 21.33x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.