Why Is United Rentals (URI) Stock Rocketing Higher Today

What Happened?

Shares of equipment rental company United Rentals (NYSE:URI) jumped 5.6% in the morning session after investment bank UBS upgraded its rating on the company's stock to Buy from Neutral and set a new price target of $1,025. 

The bank's decision was based on an expected rebound in U.S. non-residential construction activity. UBS noted that it anticipated accelerated earnings growth for United Rentals, forecasting 5.0% year-over-year growth in 2026 and 7.2% in 2027. The firm's analysis suggested a 13% adjusted earnings growth from 2025 to 2027, which was higher than the general market expectation of 11%. This positive outlook from a major financial institution signaled confidence in the company's future performance, leading to increased investor interest.

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What Is The Market Telling Us

United Rentals’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 27 days ago when the stock gained 1.9% on the news that the company announced it acquired the Australian rental company Alfasi Hire. 

The deal brought Alfasi Equipment Hire under the umbrella of United Rentals, which is the world's largest equipment rental company. This move signaled expansion for the firm. In contrast, a key competitor, the British construction equipment rental firm Ashtead, reported struggles. Ashtead missed analyst expectations for its half-year adjusted pretax profit. The company pointed to high costs from internal repairs and lower hurricane activity as reasons for the shortfall. The contrast between United Rentals' strategic growth and a major competitor's difficulties likely appeared favorable to investors.

United Rentals is up 6.9% since the beginning of the year, but at $903.66 per share, it is still trading 11.4% below its 52-week high of $1,020 from October 2025. Investors who bought $1,000 worth of United Rentals’s shares 5 years ago would now be looking at an investment worth $3,836.

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