Updated Aug 6 at 2:11pm ET.
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Argus Research lifted its price target from $1,200 to $1,250, suggesting the stock has room to rise from its current level. This move comes after the company reported record results for the second quarter. While the firm is optimistic, the new target is only a small increase and sits near the average analyst target of $1,233.
Source: Argus Research
Wells Fargo raised its price target from $1,245 to $1,355 while keeping its overweight rating, which means they expect the stock to perform better than others in the sector. This is a significant bump that reflects confidence in the company's ability to keep growing its fleet productivity and earnings. The new target is well above the current stock price and the average analyst target of $1,233.
Source: Wells Fargo
Barclays raised its price target from $715 to $950, a large jump that acknowledges the company's strong performance. However, the firm kept its underweight rating, which is a signal that they expect the stock to perform worse than other companies in the same industry. Even with the higher target, Barclays remains much more pessimistic than other analysts, as their $950 goal is well below the current stock price.
Source: Barclays
The company reported adjusted earnings of $12.76 per share, which was well ahead of the $11.53 that analysts expected. Revenue grew to $4.41 billion, also beating estimates. This growth was supported by a 3.4 percent increase in fleet productivity, which measures how much revenue the company earns from each dollar of equipment it owns.
Management was confident enough in the current demand for construction and industrial equipment to raise its financial outlook for the full year. The company also returned nearly $1 billion to shareholders in the first half of the year through dividends and share buybacks. These buybacks are a key part of the business's strategy to grow earnings per share faster than the overall market by reducing the total number of shares.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
United Rentals will pay a quarterly dividend of $1.97 per share on August 26. This is a routine payment for the company, which uses its cash flow to pay shareholders while also buying back its own stock. To receive the payment, you must own the shares by the end of the day on August 12.
Source: Business Wire
Management has a habit of beating their own targets, recently clearing a high bar with double-digit growth. It shows they have a very firm grip on their costs and fleet timing.
| Expectation | |
|---|---|
| EPS | $13.86 |
| Revenue | $4.69B |
Seeking Alpha · Opinion · Jul 23
Seeking Alpha · Opinion · Jul 23
Business Wire · Press release · Jul 22
Business Wire · Press release · Jul 22
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