United Rentals Stock (URI) Gains New Bull on Wall St., As Earnings Approach

United Rentals stock (URI) has been given a boost following RBC Capital's initiation of coverage with an ‘Outperform' rating. This bullish sentiment is further supported by a series of positive developments, reinforcing the company's strong financial performance and strategic initiatives.

Currently, United Rentals shares trade at $1002.29, up 6.24% in the past month. The company’s year-to-date performance stands at an impressive 45.3%, delivering a strong outperformance on broader markets.

RBC Capital's $1,152 price target suggests a significant upside potential, predicated on the belief that the equipment rental industry possesses inherent structural advantages. A key driver behind this optimistic outlook is the bonus depreciation benefit within the One Big Beautiful Bill Act, which has markedly improved United Rentals' free cash flow conversion. 

In Q2 2025, United Rentals reported revenues of $3.943 billion, with an adjusted EPS of $10.47, leading to increased full-year guidance and an additional $400 million allocated for share repurchases, bringing the total to $1.9 billion. The dividend payouts are also contributing to investor confidence. The company declared a quarterly cash dividend of $1.79 per share, paid on August 27.

Further fueling positive sentiment is United Rentals' commitment to safety and innovation, exemplified by the enhanced Confined Space Safety Training program. The company's investment in digital advancements, incorporating AI and augmented reality, aims to improve customer experience and operational efficiency. This forward-looking approach has attracted institutional investors, reinforcing confidence in United Rentals' long-term growth prospects.

Analysts have also revised their price targets upward, with KeyBanc increasing its target to $1,120 from $1,075, Citi raising its target to $1,080 from $1,000, and Bernstein upgrading the stock to ‘Outperform' from ‘Market Perform.' 

Price Targets

With earnings due tomorrow, we can expect some clarification from URI about the direction of travel. Markets are looking for an EPS of $12.29, on revenue of $4.16billion. This would reflect a Y/Y sales growth of 4.17%, and a handy uplift on the EPS of $11.80 delivered this time last year.

Earnings expectations have in fact been revised to the downside in recent weeks, with 4 analysts trimming EPS targets, and 2 raising in the past 30 days. This has pulled the consensus down from $13.31 to $12.29 in the month leading in.