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    United Rentals (URI): Evaluating Valuation as Manual Assist AI Advances Its Digital Transformation

    Simply Wall St·12/20/2025 16:13:39
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    United Rentals (URI) is leaning further into its digital strategy, rolling out Manual Assist AI across its network to give technicians faster diagnostics, quicker repairs, and less downtime for rental fleets on customer jobsites.

    See our latest analysis for United Rentals.

    Those AI driven efficiency gains are landing against a backdrop where the share price is now $812.42, with a solid year to date share price return of 17.77 percent and a powerful five year total shareholder return of 260.61 percent. This suggests the long term momentum story is still very much intact, even if shorter term share price performance has cooled recently.

    If this kind of digital upgrade has you thinking more broadly about where growth could come from next, it is a good moment to explore fast growing stocks with high insider ownership.

    With shares up strongly over five years but lagging more recently, and trading at a chunky discount to analyst targets and intrinsic value estimates, is United Rentals quietly undervalued here, or is the market already baking in years of AI powered growth?

    Most Popular Narrative Narrative: 19.3% Undervalued

    With United Rentals last closing at $812.42 against a narrative fair value near $1,007, the gap reflects a bullish long term cash flow story.

    The analysts have a consensus price target of $900.222 for United Rentals based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the more bullish reporting a price target of $1075.0, and the most bearish reporting a price target of just $592.0.

    Read the complete narrative.

    Want to see what is powering that valuation gap? The narrative refers to rising margins, steady top line growth and a future earnings multiple usually reserved for sector leaders. Curious which assumptions really move the fair value dial here?

    Result: Fair Value of $1,007.14 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, a slowdown in large project activity, or sustained margin compression from higher repositioning and ancillary costs, could quickly challenge that undervaluation thesis.

    Find out about the key risks to this United Rentals narrative.

    Build Your Own United Rentals Narrative

    If you see the story differently, or simply want to dig into the numbers yourself, you can build a fresh view in minutes: Do it your way.

    A great starting point for your United Rentals research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.