NEW YORK (TheStreet) -- Shares of United Rentals (URI) are higher by 1.42% to $90.99 in pre-market trading on Friday morning, following reports that activist investor Jana Partners LLC has taken a 6% stake in the equipment rental services company.
"URI is the leader in equipment rental," said Nik Mittal, a partner at Jana speaking at the 2015 Carter Burden Investment Conference in New York on Thursday, Reuters reports.
United Rentals stock has fallen recently as a result of the decline in oil prices. However, Mittal said he feels that investors were overreacting.
United Rentals is "run by a great CEO who led the company to be number one in the sector," Mittal said, Reuters noted.
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."
Highlights from the analysis by TheStreet Ratings Team goes as follows: