United Rentals stock price target raised to $1,075 by KeyBanc on data center growth

Published 29/08/2025, 11:50
United Rentals stock price target raised to $1,075 by KeyBanc on data center growth

Investing.com - KeyBanc raised its price target on United Rentals (NYSE:URI) to $1,075.00 from $960.00 on Friday, while maintaining an Overweight rating on the equipment rental company’s stock. The stock, currently trading at $955.24 with a market capitalization of $61.5 billion, has shown remarkable momentum with a 49% gain over the past six months.

The price target increase follows KeyBanc’s updated analysis of secular non-residential construction trends, particularly in the data center sector. The firm tracked approximately 542 data center projects announced from January 2020 through July 2025, representing a total investment value of about $990 billion.

Despite potential challenges such as interest rates, legal issues, and power grid constraints that could delay or cancel some projects, KeyBanc estimates there is approximately $459 billion in forward investment visibility after applying a conservative 50% discount to remaining project spending.

KeyBanc identified United Rentals as one of the largest potential beneficiaries within its coverage universe from this data center construction trend, alongside WCC, AHT.L, and HRI.

The firm also raised its price target on WCC to $258 from $240 and adjusted estimates for HRI and WCC as part of its broader sector update.

In other recent news, United Rentals reported its second-quarter earnings for 2025, showing a slight miss in earnings per share (EPS) but exceeding revenue expectations. The company posted an EPS of $10.47, just below the anticipated $10.50, while revenue reached $3.94 billion, surpassing the forecasted $3.90 billion. Analysts have responded positively to these developments, with Argus raising its price target for United Rentals to $935 from $725, maintaining a Buy rating. Bernstein SocGen Group also increased its price target to $885 from $856, citing a strong quarterly performance and increased guidance. KeyBanc followed suit, raising its target to $960 from $865, emphasizing the company’s robust equipment rental revenue and Specialty growth. Additionally, United Rentals has launched an enhanced Confined Space Safety Training program, aimed at improving site safety and regulatory compliance. These recent developments reflect the company’s continued focus on revenue growth and operational improvements.

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