United Rentals price target raised to $650 from $490 at Citi

Citi analyst Timothy Thein raised the firm’s price target on United Rentals to $650 from $490 and keeps a Buy rating on the shares after hosting meetings with management and speaking to rental industry contacts. The feedback was constructive as robust contractor backlogs and secular demand tailwinds should help to support rental revenue growth in 2024, albeit at a more modest rate and with more narrow end market leadership compared to recent years, the analyst tells investors in a research note. The firm says more meaningful for the stock is the Federal Reserve’s recent pivot and sharply lower Treasury yields, which make it incrementally more positive on the non-residential spending outlook into 2025.