UBS upgrades United Rentals (NYSE:URI) to a Buy rating after having the stock slotted at Neutral.
Analyst Steven Fisher and team think the infrastructure stimulus agreement reached in Congress will lead to a "faster than expected recovery" in United Rentals business as construction spending accelerates.
"We think the $579b of incremental spending, assuming the majority goes to construction, equates to ~15% upside to current non-residential construction spending."
The firm sets FY22 and FY23 estimates on United Rentals ahead of consensus and forecasts a multi-year path of EBITDA growth.
UBS hikes its price target on United Rentals to $375 from $335.
Shares of United Rentals are up 1.64% premarket after gaining 2.82% yesterday.