JP Morgan Raises United Rentals' Price Target to $950: What It Means for the Stock

JP Morgan analyst Tami Zakaria has raised the price target for United Rentals (URI) to $950, a 3.26% increase, maintaining an "Overweight" rating. The average target price from 17 analysts is $737.60, with a high estimate of $921.00 and a low estimate of $565.00. The average brokerage recommendation is 2.4, indicating "Outperform" status. The estimated GF Value for URI in one year is $663.74, suggesting a downside of 19.03% from the current price.

In a significant development for the machinery rental sector, JP Morgan analyst Tami Zakaria has raised the price target for United Rentals (URI) to $950, a 3.26% increase from the previous target of $920.00 [1]. This upward revision reflects a positive outlook on the company's performance and growth prospects. Notably, the analyst has maintained an "Overweight" rating, indicating confidence in United Rentals' future.

The move by JP Morgan comes amidst a strong performance in the machinery sector, driven by recent legislative and monetary policy developments. The One Big Beautiful Bill (OBBB), a sweeping tax reform initiative, includes provisions that could benefit businesses by enhancing flexibility for domestic R&D costs and providing immediate deductions for R&D expenses [2]. Additionally, expected Federal Reserve rate cuts are likely to boost machinery stocks as interest rates decrease historically [3].

United Rentals reported robust earnings in the first quarter of 2025, with revenue exceeding expectations by 6.7% year-over-year and adjusted EPS beating estimates by 0.5% [4]. The company's specialty rental segment grew by 22% year-over-year, and used equipment sales set records, contributing to overall revenue growth. However, management acknowledged margin pressures from fleet repositioning and a shift in business mix, which contributed to a decline in operating margins compared to last year.

The average target price from 17 analysts is $737.60, with a high estimate of $921.00 and a low estimate of $565.00. The average brokerage recommendation is 2.4, indicating an "Outperform" status [1]. The estimated GF Value for URI in one year is $663.74, suggesting a downside of 19.03% from the current price [1].

Investors should closely monitor United Rentals' progress and the broader economic environment to assess potential risks and opportunities. The company's ability to navigate margin pressures and the impact of tariffs on customer behavior will be key factors in determining its future performance.

References:
[1] https://www.gurufocus.com/news/2970648/jp-morgan-raises-price-target-for-united-rentals-uri-to-950-uri-stock-news
[2] https://www.bipc.com/one-big,-beautiful-bill-.-.-.-simplified
[3] https://www.ainvest.com/news/jpmorgan-increases-united-rentals-price-target-industry-optimism-2507/
[4] https://markets.financialcontent.com/stocks/article/stockstory-2025-7-8-united-rentalss-q1-earnings-call-our-top-5-analyst-questions