KeyBanc Upgrades United Rentals (URI) to Overweight

On May 22, KeyBanc Capital Markets analyst Ken Newman upped United Rentals, Inc. (NYSE:URI)’s stock from “Sector Weight” to “Overweight”, providing a price objective of $865.00.

United Rentals, Inc. (NYSE:URI), which is an equipment rental company, has a large fleet size and diverse portfolio, which consists of high-value niche Specialty offerings. The analyst’s favourable outlook on the company’s stock is not because of immediate improvements in non-residential construction fundamentals or fleet dynamics. Rather, the analyst opines that the recent fall in its share price provides a favorable opportunity for investors to enter. Over the past 6 months, the company’s stock has seen a decline of over ~17%.

United Rentals, Inc. (NYSE:URI) remains well-placed to withstand the current macroeconomic uncertainties and to benefit from expected market upturns, added Newman. As per the analyst, the company’s significant business with larger National Accounts, thanks to its ongoing large-scale projects, can lead to stable rental revenue growth and better fleet dynamics in comparison to its main competitors. Overall, the analyst believes that despite the absence of a short-term boost, United Rentals, Inc. (NYSE:URI)’s strategic advantages and market positioning paint a favourable picture for its stock.

While we acknowledge the potential of URI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than URI and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.