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Investing.com – United Rentals (NYSE:URI) gave up some gains but was still up 0.7% during Friday’s session on an upgrade from UBS (NYSE:UBS) to buy from neutral.
Analyst Steven Fisher believes the Biden administration’s $1 trillion infrastructure spending plan will drive a faster than expected recovery in the company’s business as construction activity accelerates.
Fisher now sees the stock at $375, a 17.5% upside from the stock’s current level of $319.
The analyst estimates that the $579 billion in incremental spending amounts to about 15% upside to current non-residential construction spending.
With $579 billion of spending above expected federal levels and a total of $973 billion of investment over five years and $1.2 trillion if continued over eight, the agreement will make new investments in the electrical grid, transit, roads and bridges and other forms of infrastructure, according to The Wall Street Journal.
UBS forecasts a multi-year path of EBITDA growth at United Rentals.
Wednesday, Citi (NYSE:C) upgraded United with a $350 target.
