United Rentals: Strong Performance and Resilience Amidst Market Challenges Justifies Buy Rating

In a report released today, Michael Feniger from Bank of America Securities reiterated a Buy rating on United Rentals (URI – Research Report), with a price target of $670.00.

Michael Feniger has given his Buy rating due to a combination of factors that highlight United Rentals’ strong performance and resilience in a challenging market environment. The company reported a solid first quarter with an EBITDA of $1.67 billion, which is a 5% increase year-over-year, and reaffirmed its full-year guidance. This performance is particularly notable given the softer results from peers and the prevailing macroeconomic uncertainties.
Feniger also points out that United Rentals stands out in the rental space due to its customer mix, free cash flow generation, and leverage management, which are crucial in a slowing economic backdrop. The company reported a free cash flow of $1 billion and introduced a new $1.5 billion repurchase program. Additionally, United Rentals reaffirmed its 2025 guidance, including capital expenditures, which demonstrates its flexibility and resilience. These factors collectively support Feniger’s Buy rating, as they indicate the company’s ability to navigate and thrive amidst industry challenges.