Bank of America (BofA) has revised its price target for United Rentals (URI, Financial), reducing it from $750 to $670 while maintaining a Buy rating on the stock. The adjustment reflects the bank's cautious outlook towards the upcoming earnings period for the Machinery, Engineering & Construction (E&C), and Waste sectors.
BofA analysts suggest that these industries might face a difficult earnings season, which they describe as a "lose-lose" scenario. Companies in these sectors could either lower their future earnings guidance due to increasing uncertainties or risk appearing disconnected from the current market conditions if they do not.
The firm has been adjusting price targets across these sectors and is expressing a preference for service-oriented businesses, such as those dealing with aggregates, rentals, and waste management, over companies that focus on manufacturing original equipment. This strategic shift indicates BofA's inclination towards more resilient segments of the market amid economic uncertainties.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 16 analysts, the average target price for United Rentals Inc (URI, Financial) is $701.57 with a high estimate of $974.00 and a low estimate of $485.00. The average target implies an upside of 23.08% from the current price of $570.01. More detailed estimate data can be found on the United Rentals Inc (URI) Forecast page.
Based on the consensus recommendation from 23 brokerage firms, United Rentals Inc's (URI, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for United Rentals Inc (URI, Financial) in one year is $614.73, suggesting a upside of 7.85% from the current price of $570.01. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the United Rentals Inc (URI) Summary page.
