URI Stock Gains Following Rating Upgrade From Bernstein, Analyst Sees Strong Upside From Rebounding Construction Spend

United Rentals (URI) shares rose nearly 3% during midday trading on Tuesday after Bernstein upgraded the stock to ‘Outperform’ from ‘Market Perform,’ noting that U.S. non-residential construction spend is set to reaccelerate and the company was a "big beneficiary.”

Bernstein also raised its price target on the shares to $1,128, up from $885, according to TheFly. The firm noted that this implies 20% upside from current levels. Bernstein believes the company is becoming less capital-intensive and should trade at a higher multiple.

Retail sentiment on United Rentals remained unchanged in the ‘bearish’ territory, with message volumes at ‘normal’ levels, according to data from Stocktwits.

Citigroup analyst Kyle Menges raised the firm's price target on United Rentals to $1,080 from $1,000 and maintained a ‘Buy’ rating. The firm adjusted its price targets in the machinery group.

United Rentals is an equipment rental company with an integrated network of 1,615 rental locations across North America, 40 in Europe, 39 in Australia, and 19 in New Zealand. In North America, the company operates in 49 states and every Canadian province. 

In August, United Rentals announced the launch of two new features in its suite of digital tools, known as smart suggestions and equipment fit augmented reality. The company stated that these enhancements enable customers to make faster, more confident rental decisions by anticipating their needs and providing greater job-site visibility before placing an order.

Shares of United Rentals have gained nearly 37% this year and have increased by 20% over the last 12 months.

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