Hertz Global Holdings (NASDAQ:HTZ) fell 3.88% in early trading on Thursday after Morgan Stanley pulled its bull rating on the car rental stock.
Analyst Adam Jonas and team moved to an Equal-weight rating on Hertz (HTZ) as they pointed to continued risks to strategy. Following Hertz’s (HTZ) Q4 results, the firm noted it has incrementally lower confidence that the company is fundamentally changing its fleet strategy. Jonas said the targeted 20K reduction in global EV units is an important first step, but thinks more needs to be done. It was also observed that there was less visibility and transparency around key economic drivers for FY24 than expected and that Q4 share buybacks suggest management’s recognition of its strategic problems may have come later than Morgan Stanley expected. Jonas and team continue to believe HTZ is under-earning relative to normalized EBITDA
Morgan Stanley lowered Hertz Global (HTZ) to an Equal-weight rating and set a new price target of $10.
Shares of Hertz Global (HTZ) fell 3.05% in early trading on Thursday to $8.50 vs. the 52-week range of $7.73 to $20.48.