Analyst Note| Dawit Woldemariam |
United Rentals recently held its investor day, where management reiterated its 2023 outlook. This led us to leave our $424 fair value estimate unchanged. We'e expecting demand to remain strong for the company in the remainder of 2023. For sales, we're projecting 20% year-on-year growth, which is a strong level, given the company posted similar growth in 2022. In terms of margins, we believe strong demand will allow United Rentals to maintain strong pricing. As a result, we forecast operating margins to expand 60 basis points to 28.4% in 2023.