NEW YORK (TheStreet) -- Shares of United Rentals (URI) were sinking, lower by 5.49% to $89.74 on heavy volume in mid-morning trading Friday, after analysts at Bank of America/Merrill Lynch downgraded the equipment rental company to "underperform" from "neutral" earlier today.
The firm also lowered its price target to $80 from $108.
Analysts believe pricing power continues to be pressured by the collapse in crude oil prices, as well as the slowdown in the U.S. economy.
As of 10:31 a.m. ET today, about 2.65 million shares have exchanged hands compared to its average daily volume of about 2.17 million shares.
Stamford, Conn.-based United Rentals is an equipment rental company with 832 rental locations, offering approximately 3,100 classes of equipment for rent to construction and industrial companies, manufacturers, utilities, municipalities, homeowners, government entities and other customers.
Separately, TheStreet Ratings team rates UNITED RENTALS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate UNITED RENTALS INC (URI) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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 its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."