United Rentals upgraded to Market Perform from Underperform at Bernstein

Bernstein upgraded United Rentals (URI) to Market Perform from Underperform with a price target of $666, down from $705. The firm says it underestimated the power of Specialty Rental, which has become an “outsized contributor” to growth in earnings, returns and the stock’s multiple. Specialty is emerging as United Rentals’ secular growth engine and the rental penetration opportunity is “massive,” the analyst tells investors in a research note. Bernstein believes Specialty is the catalyst for durable return on invested capital and multiple expansion for the shares.