Baird Downgrades Herc, United Rentals; Cuts Price Target - United Rentals (NYSE:URI), Herc Hldgs (NYSE:HRI)

Baird analyst Mircea Dobre downgraded Herc Holdings Inc HRI to Neutral from Outperform and lowered the price target to $161 (an upside of 3.85%) from $222.
Dobre notes the stock has outperformed the market since June 2020, benefitting from tight equipment supply/demand dynamics in 2021. However, this benefit will likely dissipate as supply chain normalization leads to improved manufacturing production and higher equipment supply in 2022, adds the analyst.
Dobre considers labor will likely become a more significant challenge in 2022, limiting customers' growth ability.
Dobre seeks to re-engage with the shares in the second half of 2022 in anticipation of a "2023 infrastructure-driven reacceleration."
The analyst downgraded United Rentals, Inc. URI from Outperform to Neutral and lowered the price target to $317 (a downside of 1.53%) from $439.
Price Action: HRI shares closed lower by 3.97% at $154.91 on Monday. URI shares are trading lower by 1.24% at $318 during the premarket session on Tuesday.