Justin Jordan of Jefferies on Thursday commented in a note that shares of United Rentals, Inc. URI are set to bounce after the company reported its fourth-quarter results.
Jordan notes that shares of United Rentals have dipped around 25 percent in two months on oil exposure fears, but the company's 2015 EBITDA guidance of $2.95 billion to $3.05 billion and $725 million to $775 million free cash flow guidance should support shares. The analyst adds that shares should also be supported by the company's strong growth in sectors outside of oil.
Jordan also states that only 1 percent of the company's customers are expecting a slowdown year-over-year while its 2015 net rental capex guidance remains unchanged at $1.2 billion.
United Rentals has also committed to a $750 million share buyback program over the next 18 months, with $125 million stock repurchased in 2015 yea- to-date.
Shares are Buy rated with a $130 price target.
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