NEW YORK (TheStreet) -- Oppenheimer raised its price target today on United Rentals (URI) stock to $127 from $122 and reiterated an "outperform" rating of the Stamford-based equipment rental company, following its Investor Day yesterday.
"Unsurprisingly, URI effectively (and proactively) segmented its oil & gas exposure, leading investors to conclude severe scenarios would likely pose only a slight (and manageable) impact on still net double-digit year-over-year EBITDA growth in 2015," analysts said.
"The spike in URI's punchbowl arrived at the end of the day," analysts said, when the company introduced "strong free cash flow guidance of $2.5 billion over the 2015 to 2017 period, via rental rate growth expectations of 3% to 4%, 3%, and 3% year-over-year in 2015, 2016, and 2017, respectively."
Additionally, the company introduced "ambitious yet achievable 2017 total revenue/adjusted EBITDA targets of $6.9 to $7.3 billion/$3.6 to $3.9 billion," analysts added.
Shares of United Rentals are up 2.04% to $115.66.
Separately, TheStreet Ratings team rates UNITED RENTALS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate UNITED RENTALS INC (URI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."