Oppenheimer: United Rentals Still Has Solid Risk/Reward

In a report published Thursday, Oppenheimer analysts reiterated their Buy rating on

, as well as the price target of $105. The analysts believe that the company's intermediate to long term risk-reward profile continues to be favorable. Oppenheimer expects United Rentals to report robust 1Q15 results, although investor concerns regarding an end-market slowdown due to oil prices could keep the shares range bound in the near term. "We anticipate solid 1Q15 results via disciplined pricing/sound business environment, partly mitigated by expected upstream oil-related softness/weather influenced branch day closings," the analysts stated. The analysts also believe that investor concerns, regarding aggressive pricing by United Rental's competitor, while entering new markets, is likely to be overdone. Industry pricing on the whole, and the company's pricing in particular, continue to be relatively disciplined, according to Oppenheimer. In addition, the company's industrial business has been witnessing robust growth despite the competitive environment. "Considering 1Q is seasonally light/was likely affected by weather-related branch closure days/moderately impacted by expected upstream oil&gas end market impact from lower oil prices, we perceive sufficient headwinds to mitigate major upside," the analysts added, while saying that they prefer remain bullish on the stock in the long term.