On Tuesday, Evercore ISI affirmed its Outperform rating and $1,004.00 price target on United Rentals (NYSE:URI), a stock that has delivered impressive returns with a 47.1% gain year-to-date and 70.38% over the past year. The firm's stance comes after a conversation with United Rentals management, who indicated that recent comments from Ashtead (LON:AHT), their largest competitor, align with United Rentals' own forecasts and guidance, presenting no surprises. According to InvestingPro data, URI maintains a GREAT financial health score, reflecting its strong market position.
Ashtead reported its fiscal second quarter 2025 results, covering the period from May 1 to April 30, earlier on the same day. Following the report, Ashtead's stock, which is traded in Europe, experienced a decline of approximately 13%. Additionally, Ashtead announced intentions to shift its primary stock listing to the United States within the next 12 to 18 months.
Despite Ashtead's stock performance, Evercore ISI continues to view United Rentals favorably, citing the company as a "relative long" and including it among their top five preferred stocks. This preference is within the firm's broader investment perspective, which favors selective U.S. over international stocks, U.S. trucking, and U.S. short cycle over agriculture and construction machinery sectors. InvestingPro analysis reveals URI as a prominent player in the Trading Companies & Distributors industry, with a robust EBITDA of $4.54 billion in the last twelve months.
The analyst's comments suggest confidence in United Rentals' market position and outlook, reinforcing the company's status as a strong performer within the industry.
The reiterated price target of $1,004.00 by Evercore ISI reflects a continued positive expectation for United Rentals' stock performance. Trading at a P/E ratio of 21.73, URI currently appears slightly overvalued according to InvestingPro's Fair Value analysis.
Investors seeking deeper insights can access URI's comprehensive Pro Research Report, part of InvestingPro's coverage of over 1,400 US stocks.
In other recent news, United Rentals has witnessed a record-breaking third quarter, posting revenues close to $4 billion and rental revenues at $3.5 billion, marking significant year-over-year increases.
The company's adjusted EBITDA reached $1.9 billion, with an impressive margin of nearly 48%, and adjusted EPS grew to $11.80. The company also reported a 24% increase in specialty rental revenue.
United Rentals expects its full-year revenue to be between $15.1 billion and $15.3 billion, with adjusted EBITDA ranging from $7.115 billion to $7.215 billion. The equipment rental giant plans to return approximately $1.9 billion to shareholders, reflecting its strong financial performance.
Despite acknowledging uncertainties tied to local market conditions, interest rates, and inflation pressures, the company remains optimistic about its outlook. United Rentals is confident about its growth into 2025, driven by fleet productivity and specialty services. The integration of the General Finance (NASDAQ:GFN) acquisition is progressing well, with plans for further growth in that sector.
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