Oppenheimer Previews United Rental Earnings

  • United Rentals, Inc. URI is scheduled to announce its third quarter financial results next Wednesday.
  • One week before the call, analysts at Oppenheimer preview the results, assuring that they are likely to come in as expected. Thus, they reiterate an Outperform rating and $85.00 price target on the stock.
  • Shares of United Rentals are up almost 0.5 percent on Wednesday trading.

According to a report issued Wednesday, Oppenheimer analysts Scott Schneeberger and Daniel Hultberg anticipate third quarter results relatively in line with the market’s expectations. The note that, while “industry fleeting/oil & gas fleet absorption headwinds” probably remained a headwind (although an expected one), they believe persistent growth in non-residential construction is “adequate to play a sufficiently mitigating factor relative to expectations.”

After the company and the Street reset expectations for the second half of the year at an apparently achievable level, and with unfavorable sub-cycles (industry fleeting/oil & gas fleet absorption) likely dissipating over the next 12 months, Oppenheimer expects a slightly positive reaction to third quarter results probably (pretty much) in line with estimates.

Related Link: Morgan Stanley: Machinery Stocks Face 'Doom And Gloom,' But This One Could Survive

For the third quarter of 2015, Oppenheimer envisions earnings of $2.33 per share on revenue of $1.558 billion. The Street, for its part, expects consensus revenue in line with Oppenheimer; however, the EPS estimate stands at $2.37.

United Rentals offers “multi-year growth (cyclical/secular via market expansion), margin, and free cash flow expansion potential (with share repurchases lending [downside] support).” Thus, the experts think the current valuation is quite attractive for investors with a horizon of at least 12 months.

 

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorPrice TargetPreviewsReiterationAnalyst RatingsTrading IdeasDaniel HultbergOppenheimerScott Schneeberger
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!