Oppenheimer Cuts Price Target on United Rentals (URI) Following 2Q15 Results and Guidance

Oppenheimer maintained an Outperform rating on United Rentals (NYSE: URI), and cut the price target to $85.00 (from $105.00), following 2Q15 results and guidance. Analyst Scott Schneeberger said that URI reduced 2015 rental rate guidance from +3% to +0.5%.

Schneeberger commented, "Despite modifying estimates ahead of a foreshadowed challenging 2Q15, which actually outperformed expectations, 2015 guidance cuts were deeper/more "prolonged" than anticipated. We'd hoped "formal" 2015 guidance cuts would've reset expectations, yet leave room for 2H15 optimism into what could still be a formidable 2016. The 2H15 "potential" has essentially "come off the table," leaving URI likely range-bound over coming months. We remain constructive non-residential construction/broad industrial/economic trends sustain, while adverse sub-cycles (oil prices/industry fleeting) dissipate over the coming 12-18 months, and allow for 2016 re-acceleration of growth (vs. easy y/y comps) in URI's key operational/financial metrics. Maintaining Outperform, we're modifying previously reduced 2015-2017 estimates/PT from $105 to $85."

For an analyst ratings summary and ratings history on United Rentals click here. For more ratings news on United Rentals click here.

Shares of United Rentals closed at $64.72 yesterday.

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