United Rentals (URI) is showing consistent performance in an inconsistent environment following its Q2 results beat, Morgan Stanley said in a Friday note.
"We think URI's results will continue to outperform the group driven by consistent strong execution and idiosyncratic factors," the report said.
The note said the company is benefiting among others from self-help cost management, mega project exposure, specialty rental market growth, and market share gains.
"Combined with capital allocation firepower and the potential for a credit rating upgrade to IG, we see room for continued re-rating of shares," the note said. IG refers to investment grade.
Morgan Stanley kept its overweight rating while raising its price target to $1,335 from $1,165.
Price: $1138.80, Change: $-0.91, Percent Change: -0.08%