KeyBanc Capital Markets Initiates United Rentals Coverage (URI)

KeyBanc Capital Market initiated coverage on United Rentals URI with a Buy rating and $42 price target in a research report published this afternoon.

In the report, KeyBanc Capital Markets states, "Like other large rental firms, URI is pursuing larger ticket, national/industrial customers, the characteristics of which we believe foster better profitability. In our view, rental firms with national scale and the ability to provide a single point of contact, exemplary service, a national contract, etc., are best positioned to penetrate these accounts. URI currently generates roughly 30% of revenue from these accounts and aspires to reach 40% over the next several years. As this penetration occurs, we believe URI should experience a margin tailwind from more favorable customer mix."

Shares of United Rentals closed today at $30.37, reflecting no change from Monday's market close.