Will United Rentals (URI) Stock Be Pressured by Goldman Downgrade?
NEW YORK (TheStreet) -- United Rentals (URI) - Get Report shares are advancing 0.64% to $61.43 on Friday afternoon despite Goldman Sachs cutting its rating on the stock to "sell" from "neutral," citing numerous headwinds.
The firm, which has a $58 price target on the stock, sees a challenging outlook for industry pricing and fleet growth.
It appears that competition in growing, with the company's biggest rival Sunbelt focusing on growing its nationwide footprint. Sunbelt is planning for $750 million of fleet growth this year, analysts noted.
Key risks to Goldman Sachs' current valuation are reacceleration in industrial production and the weaker dollar.
Based in Stamford, CT, United Rentals operates as an equipment rental company.
Separately, TheStreet Ratings currently has a "Buy" rating on the stock with a letter grade of B-.
The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: URI
