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Today, on January 14, 2025, United Rentals (NYSE:URI) gained 4.01% in the open market following upgrade from brokerage firm Robert W. Baird. The analyst upgrades the largest equipment rental company in the world fromUnderperform to Neutral with unchanged price target of $658 or 8.20% downside from current price of $716.79 when this article is written.
The recent pullback which started in December 2024 offers a more attractive entry point for the analyst to upgrade United Rentals to Neutral.
United Rentals recently announced its plan to acquire H&E Equipment Services (NASDAQ:HEES) at $92 per share, inviting excitement from the market to buy HEES shares and appreciate the stock price 105.76% today to $90.41 per share, nearing the acquisition price.
The acquisition price of $92 per share will result to $4.8 billion in cash plus $1.4 billion in net debt for HEES, and the deal is expected to close some time in the first quarter of 2025.
Acquiring HEES is part of URI's grow the core strategy and is expected to generate $130 million in annualized cost synergies within 24 months following the purchase. The acquisition will add fix assets comprising 64,000units that valued at over $2.9 billion to United Rentals' fleet.
This article first appeared on GuruFocus.