Analyst Kyle Menges from Citi maintained a Buy rating on United Rentals and increased the price target to $1,140.00 from $1,080.00.
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Kyle Menges has given his Buy rating due to a combination of factors that highlight United Rentals’ potential for growth despite current margin pressures. The company’s performance in mega projects has exceeded expectations, with a higher win rate than initially anticipated, contributing to an optimistic revenue outlook. This, coupled with the initiation of new projects outside of data centers, suggests a promising acceleration in non-residential spending as we approach 2026.
While there are challenges, such as ongoing margin compression due to fleet repositioning and ancillary outgrowth, these are expected to stabilize over time. The sentiment among customers is improving, which, along with potential rate cuts, could stimulate local market demand in the latter half of 2026. Menges’s confidence in URI’s strategic positioning and the anticipated easing of margin pressures by 2027 supports his Buy rating, along with a slight increase in the price target.