Shares of United Rentals (URI) - Get United Rentals, Inc. Report tumbled Tuesday after a sharp downgrade from an industry analyst who forecasts weaker earnings ahead for the construction equipment rental giant.
United Rentals' stock price declined 4.53% to $110.42 a share after UBS lowered its rating on the Stamford, Conn.-based company to neutral from buy, Bloomberg reported, while dramatically reducing its price target on the equipment rental company's shares.
UBS analyst Steven Fisher slashed his price target on United Rentals to $118 a share from $166 previously, a Wall "Street-low view," the news service reported.
UBS cited "increasing evidence of downward momentum" in United Rentals' main markets and "negative inflection" in earnings that could result in a 5% drop in Ebitda in 2020.
United Rentals stock price has declined "during periods of negative momentum in Ebitda and other operational factors," wrote Fisher, explaining the steep cut in UBS's price target for the company.