Investing.com -- Baird upgraded United Rentals Inc (NYSE: URI ) to "Neutral" from "Underperform," keeping its $658 price target, as the stock's recent 22% decline brings it closer to fair value.

Shares of United Rentals are down 22% since the day after the U.S. elections, compared to a 2% drop in the S&P 500 .

The pullback follows sluggish November construction spending growth, the slowest in 66 months, and a sharp rise in the 10-year yield, now over 5%.

While general rental faces continued pressure, Baird expects growth in the company’s Specialty division to remain a key driver. Although 2025 earnings and guidance may fall short of consensus, long-term upside could come from significant rebuilding efforts in Southern California following recent wildfires.

Baird sees upside and downside risks as balanced at current levels, prompting the rating upgrade.