United Rentals, a holding company engaged in the business of equipment rental, operates general rentals and trench safety, power and heating, ventilating and air conditioning (HVAC), and pump solutions.
As Sunbelt Rentals, the second largest North American equipment rental provider, has reported 27% rental revenue growth in three months to April 2015, Jefferies made implications for United Rentals.
The firm reduced 2015 estimates to $8.04 earnings per share from $8.34, and reduced EBITDA to $2.90 billion from $2.95 billion, according to the analyst note.
Separately, the supplier of rental industrial and construction equipment was the worst-performing stock on the S&P 500 after analysts at Macquarie downgraded it to "underperform" from "neutral" and maintained a $80 price target, according to the Financial Times.
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 multiple 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, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."