United Rentals Coverage Initiated at Morgan Stanley (URI)
Morgan Stanley started coverage on shares of United Rentals (NYSE:URI) in a research note issued on Thursday, ARN reports. The firm set an “equal weight” rating and a $60.00 price target on the stock. Morgan Stanley’s price target suggests a potential upside of 6.89% from the company’s current price.
The analysts wrote, “We believe FCF allocation/capex discipline is key to the investment story. In our view, several factors have changed at the company, making this a possibility during the upcoming investment cycle, but we ultimately feel that this is a ‘show me story’. We believe URI is dependent upon a Non-Resi end market pickup to achieve its cost of capital. Even then, we do not forecast an ROIC above 10% until at least 2017e. In our view, it is difficult to compare rental rates across companies, so investor concerns over pricing pressure are likely overblown. Instead, we monitor used equipment pricing, which has been relatively stable recently.”
A number of other analysts have also recently weighed in on URI. Analysts at Piper Jaffray Cos. reiterated an “overweight” rating on shares of United Rentals (NYSE:URI) in a research note to investors on Wednesday, July 17th. They now have a $72.00 price target on the stock, up previously from $62.00. Separately, analysts at TheStreet reiterated a “hold” rating on shares of United Rentals (NYSE:URI) in a research note to investors on Monday, July 15th. Finally, analysts at TheStreet reiterated a “hold” rating on shares of United Rentals (NYSE:URI) in a research note to investors on Friday, July 5th.
Three investment analysts have rated the stock with a hold rating and five have given a buy rating to the company. United Rentals presently has a consensus rating of “Buy” and an average target price of $67.83.
Shares of United Rentals (NYSE:URI) traded up 2.37% during mid-day trading on Thursday, hitting $57.46. The stock had a trading volume of 323,233 shares. United Rentals has a one year low of $31.47 and a one year high of $59.84. The stock has a 50-day moving average of $55.97 and a 200-day moving average of $53.82. The company has a market cap of $5.360 billion and a P/E ratio of 28.70.
United Rentals (NYSE:URI) last released its earnings data on Tuesday, July 16th. The company reported $1.12 EPS for the quarter, beating the Thomson Reuters consensus estimate of $1.04 by $0.08. The company had revenue of $1.21 billion for the quarter, compared to the consensus estimate of $1.23 billion. During the same quarter in the prior year, the company posted $0.66 earnings per share. The company’s quarterly revenue was up 21.5% on a year-over-year basis. On average, analysts predict that United Rentals will post $4.96 earnings per share for the current fiscal year.
United Rentals, Inc is a holding company. The Company primarily conducts its operations through its wholly owned subsidiary, United Rentals (NYSE:URI), Inc, and its subsidiaries.
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