Hertz Global Holdings Given “Underweight” Rating at Morgan Stanley (HTZ)
Hertz Global Holdings (NYSE:HTZ)‘s stock had its “underweight” rating restated by stock analysts at Morgan Stanley in a report issued on Friday. They currently have a $19.00 target price on the stock. Morgan Stanley’s price target indicates a potential downside of 32.70% from the company’s current price.
The analysts wrote, “A chorus of activist sentiment has been rising in criticism of HTZ management in the wake of delayed financial reporting, a forensic accounting audit and lowered FY guidance. Our discussions with investors suggest that HTZ´s CEO Mark Frissora is seen as acting in too disruptive a manner in what should be a disciplined, friendly oligopoly. The prevailing assumption seems to be that the car rental business is no longer anywhere near as competitive as it once was, that there are no serious threats to the oligopoly and that the 3 big players can ‘behave’ on price in an effort to maximize returns to shareholders, funded by higher car rental rates paid by the leisure and corporate traveling public.”
Shares of Hertz Global Holdings (NYSE:HTZ) traded down 0.28% on Friday, hitting $28.15. The stock had a trading volume of 444,899 shares. Hertz Global Holdings has a 52-week low of $19.73 and a 52-week high of $31.61. The stock’s 50-day moving average is $29.00 and its 200-day moving average is $28.13. The company has a market cap of $12.602 billion and a P/E ratio of 37.14. Hertz Global Holdings also saw a large growth in short interest in the month of August. As of August 15th, there was short interest totalling 10,178,638 shares, a growth of 41.4% from the July 31st total of 7,200,719 shares. Approximately 2.3% of the company’s shares are sold short. Based on an average daily volume of 7,558,097 shares, the days-to-cover ratio is currently 1.3 days.
Other equities research analysts have also recently issued reports about the stock. Analysts at Gabelli cut their price target on shares of Hertz Global Holdings from $44.00 to $36.00 in a research note on Wednesday, August 20th. They now have a “buy” rating on the stock. Separately, analysts at Deutsche Bank downgraded shares of Hertz Global Holdings from a “buy” rating to a “hold” rating in a research note on Wednesday, August 20th. They now have a $25.00 price target on the stock, down previously from $33.00. Finally, analysts at JPMorgan Chase & Co. downgraded shares of Hertz Global Holdings from an “overweight” rating to a “neutral” rating in a research note on Wednesday, August 20th. They now have a $25.00 price target on the stock, down previously from $32.00. One analyst has rated the stock with a sell rating, six have issued a hold rating and four have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and a consensus price target of $28.36.
Hertz Global Holdings, Inc (NYSE:HTZ) is a holding company.
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