Overview
RBC Capital has lowered its price target on United Rentals (NYSE: URI) to $1,041.00 from $1,123.00, while maintaining an Outperform rating on the equipment rental firm. The stock currently trades at $787.04 and carries a price-to-earnings ratio of 23.39, a level identified as high relative to near-term earnings growth.
Quarterly results and financials
The adjustment in RBC’s valuation follows United Rentals’ mixed fourth-quarter performance. The company reported annual revenue of $16.1 billion, representing 4.91% growth year over year, and a diluted earnings per share of $38.61. For the fourth quarter specifically, United Rentals posted adjusted EPS of $11.09, missing the analyst consensus of $11.78, and revenue of $4.21 billion, slightly below the expected $4.24 billion.
Analyst rationale
RBC Capital analyst Sabahat Khan flagged that revenue growth in the period was counterbalanced by ongoing margin pressure. The bank noted that United Rentals’ guidance for 2026 came in largely in line with consensus estimates that were in place before the earnings release. RBC interprets recent stock moves as partly reflecting a reversal of gains the shares had accumulated ahead of the results.
Demand and margin dynamics
RBC described the near-term demand backdrop as relatively supportive, especially for larger projects. However, those larger project opportunities have been associated with higher delivery costs that are weighing on margins. The analyst expects these margin headwinds to be temporary, anticipating improvement as the project mix stabilizes and a greater portion of the company’s fleet is placed on rent.
Market context and other developments
No recent mergers or acquisitions have been reported for United Rentals, and there have been no new analyst upgrades or downgrades announced following the results. Investors continue to monitor the company’s operational execution, margin recovery, and fleet utilization as indicators of whether the temporary pressures ease.
Conclusion
RBC’s cut to the price target narrows the implied upside from current trading levels but leaves an Outperform stance in place, reflecting a view that demand conditions support the business even as delivery-related costs compress margins in the near term.
Note: This piece reports on analyst actions, company results, and market reaction as presented in public disclosures and analyst commentary.