United Rentals (URI) - Get Report shares firmed Friday after UBS analyst Steven Fisher upgraded the world’s largest equipment renter to buy from neutral and raised his price target on the stock to $375 from $335.
Thursday's bipartisan agreement between President Joe Biden and 10 centrist senators on an infrastructure package raised Fisher’s enthusiasm.
The accord, if Congress approves it, will lead to a "faster-than-expected recovery" in the Stamford, Conn., company's business, with construction spending growing, he said.
"We think the $579 billion of incremental spending, assuming the majority goes to construction, equates to about 15% upside to current non-residential construction spending," the analyst wrote.
At Stifel, analyst Stanley Elliott also had words of praise for United Rentals. “URI … has expanded its position in heavy infrastructure/construction markets,” he said.
“We also expect accelerating cross-sell opportunities from URI's expanded higher returning specialty portfolio.”
Elliott has a buy rating and $400 target on the stock.
URI recently traded at $318.52, up 0.5%. The shares have leaped 38% in the past six months.
In other industrials-related news, on June 15 TheStreet.com reported that TheStreet.com Founder Jim Cramer likes Caterpillar (CAT) - Get Report, the world’s biggest construction machinery maker, and has liked Caterpillar for a while.
He sees it as a good target for buyers on the dip should the Fed decide to begin unloading assets and markets fall.
In April, Caterpillar posted much stronger-than-expected first-quarter earnings, thanks to a surge in construction sales.
Adjusted profit totaled $2.87 a share, up 48% from a year earlier and ahead of the Wall Street consensus forecast of $1.94.
Revenue rose 12% to $11.9 billion, besting analysts' estimates of $11.1 billion.