United Rentals stock price target raised to $960 from $865 at KeyBanc

Investing.com - KeyBanc raised its price target on United Rentals (NYSE:URI) to $960 from $865 on Sunday, while maintaining an Overweight rating on the equipment rental company’s stock. The company, currently trading at $890 and commanding a market capitalization of $57.3 billion, has seen its stock surge over 26% year-to-date.

The price target increase follows United Rentals’ second-quarter earnings beat and full-year guidance raise. The company reported stronger-than-expected equipment rental revenue, driven particularly by Specialty growth of approximately 14% year-over-year. According to InvestingPro data, URI maintains healthy profit margins with a gross profit margin of 39.5% and generates substantial revenue of $15.75 billion over the last twelve months.

KeyBanc noted that management’s increased outlook mainly reflects the impacts of ancillary revenue and the HEES termination fee, but suggested the guidance is likely conservative given solid quarterly results, improving customer sentiment, and potentially improving trends in their Breaking Ground data.

The firm expressed particular encouragement regarding United Rentals’ strong free cash flow profile and indicated potential upside to second-half estimates driven by share repurchases and/or M&A activity.

KeyBanc’s analysis suggests a bull-case scenario where United Rentals could approach approximately $8,675 million in EBITDA for fiscal year 2026, which would support a share price of slightly over $1,000 based on a 9.5x EV/EBITDA multiple, representing approximately 20% upside to the current price. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading above its Fair Value, with analyst targets ranging from $565 to $1,225. For deeper insights and 16 additional ProTips on URI, including detailed valuation metrics and growth potential, check out the comprehensive Pro Research Report available on InvestingPro.

In other recent news, United Rentals Inc. reported its second-quarter earnings for 2025, revealing a slight miss in earnings per share (EPS) while surpassing revenue expectations. The company posted an EPS of $10.47, just under the forecasted $10.50. However, revenue reached $3.94 billion, exceeding the anticipated $3.90 billion. These results indicate positive revenue performance despite the minor EPS shortfall. Investors reacted positively to the revenue figures, reflecting confidence in the company’s financial health. Additionally, analysts from various firms have weighed in on United Rentals, with some noting the company’s strong revenue performance as a positive indicator. These developments highlight the company’s ability to generate substantial revenue, even when earnings slightly underperform expectations.

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