- Morgan Stanley raised its price target for United Rentals, signaling strong analyst confidence and a potential upside of over 17%.
- The company reported record-breaking second-quarter results, with total revenue climbing 12% and rental revenue increasing by nearly 13%.
- United Rentals demonstrated significant profitability, with adjusted EPS growing 22%, leading to a raised full-year 2026 revenue outlook.
United Rentals (NYSE: URI) is the world’s largest equipment rental company, offering a vast inventory of equipment for industrial and construction use, as well as for homeowners. The company operates in the competitive Zacks Building Products – Miscellaneous industry, where its large scale provides a significant advantage in the equipment rental market.
Following the company’s recent performance, Morgan Stanley raised its price target for United Rentals to $1,335.00 from $1,165.00. This new target, set on July 24, 2026, suggests a potential upside of approximately 17.32% from the stock’s price at the time. A price target is an analyst’s estimate of a stock’s future value, reflecting analyst optimism.
This analyst optimism is backed by United Rentals’ record-breaking second-quarter results. The company’s total revenue climbed 12% year-over-year to $4.40 billion. Its rental revenue, which is a core part of its business, increased by nearly 13% to $3.80 billion, setting a new quarterly record for revenue growth.
Profitability also showed significant strength. Adjusted earnings per share (EPS) grew 22% from the prior year to $12.76. EPS is a measure of a company’s profit allocated to each share of stock. As highlighted by Zacks, this figure surpassed consensus estimates of $11.67 by 9.34%, demonstrating strong EPS growth.
Driven by this performance, United Rentals raised its full-year 2026 revenue outlook to between $17.50 billion and $17.80 billion. As highlighted by MarketBeat, CEO Matt Flannery stated that growth accelerated in the quarter. He noted that customers remain optimistic, especially regarding large projects, which supports the strong demand in the equipment rental sector.
