Oppenheimer Raises PT On United Rentals To $36

Oppenheimer has published a research report on United Rentals, Inc. URI after the company reported strong 4Q results, although not as "clean" as preferred. In the report, Oppenheimer writes "We're reiterating our Outperform rating & increasing our target to $36 (from $34) on URI's 2011 rental rate outlook of >5% y/y. With strong 4Q pricing improvement, time utilization, & EBITDA margin expansion, URI maintains momentum into a promising 2011. Total revenue in 4Q surpassed our est/consensus on robust rental revenue (+10% y/y). Adjusted EBITDA/EPS of $199M/$0.20 topped our ests of $186M/$0.14 ($0.18 consensus). Notably, 4Q was not "clean"—reported EBITDA/EPS appeared below expectations. Though not likely to lead to a major downtick, we'd look to be opportunistic should any weakness arise ahead of URI's 11 a.m. ET call (where incremental color/clarity on 1x adjustments should appease investors). We remain bullish on URI's appealing cyclical/secular/operational efficiency story & attractive valuation." Oppenheimer reiterates its Outperform rating and has raised the price target from $34 to $36. United Rentals closed yesterday at $27.53.