Hertz Global Holdings Lowered to “Neutral” at JPMorgan Chase & Co. (HTZ)
Hertz Global Holdings (NYSE:HTZ) was downgraded by JPMorgan Chase & Co. from an “overweight” rating to a “neutral” rating in a research note issued on Wednesday, TheFlyOnTheWall.com reports. They currently have a $25.00 price objective on the stock, down from their previous price objective of $32.00. JPMorgan Chase & Co.’s price objective points to a potential downside of 20.79% from the stock’s previous close.
The analysts wrote, “We are downgrading our rating on HTZ to Neutral from Overweight following the company’s 8-K filing last night. The filing contained a bundle of bad news that we believe will be the point of capitulation for many of the frustrated bulls who have been extremely patient with HTZ until this point (as it has yet to print 1Q & 2Q results due to its financial statement review that began in May 2014). “In the 8-K HTZ announced 1) it is withdrawing its 2014 guidance (and will be well below the low end of its previous guidance); 2) 2Q14 headline results were lackluster with revenues coming in below our/Street’s estimates; 3) its Rental Car Group President and Lead Independent Director retired; and 4) it potentially delayed the spin of its equipment rental business past 1Q15 (a major catalyst for investors looking for the rental car business recapitalization). “We, and believe many of the bulls, have lower confidence in HTZ’s ability to manage through the accounting/financial statement review while concurrently participating in the rental car operating fundamental upswing that its primary competitor CAR has seen to date.”
Shares of Hertz Global Holdings (NYSE:HTZ) traded down 9.79% during mid-day trading on Wednesday, hitting $28.47. The stock had a trading volume of 37,047,640 shares. Hertz Global Holdings has a 1-year low of $19.73 and a 1-year high of $31.61. The stock has a 50-day moving average of $28.66 and a 200-day moving average of $27.82. The company has a market cap of $12.745 billion and a P/E ratio of 41.53. Hertz Global Holdings also was the target of unusually large options trading on Tuesday. Investors bought 22,438 put options on the company. This is an increase of 695% compared to the typical daily volume of 2,822 put options.
Separately, analysts at Zacks upgraded shares of Hertz Global Holdings from an “underperform” rating to a “neutral” rating in a research note on Monday. They now have a $30.90 price target on the stock. Six equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company. Hertz Global Holdings has a consensus rating of “Hold” and an average target price of $27.99.
Hertz Global Holdings, Inc (NYSE:HTZ) is a holding company.
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