Herc Holdings Analyst Hits Stock With Double-Downgrade As Hollywood Strike Continues
Portfolio Pulse from AJ Fabino
Bank of America analyst Sherif El-Sabbahy has downgraded Herc Holdings Inc (HRI) from Buy to Underperform and lowered the price target from $150 to $140 due to the ongoing Hollywood writers’ and actors’ strike. The strike is expected to negatively impact Herc's earnings in the near term, despite the company's rental equipment industry expected to perform well. The analyst favors United Rentals, Inc (URI) as a better representation of the rental sector.
July 21, 2023 | 8:36 pm
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Herc Holdings Inc (HRI) has been downgraded by a Bank of America analyst due to the ongoing Hollywood strike. The strike is expected to negatively impact Herc's earnings in the near term.
The ongoing Hollywood strike is expected to negatively impact Herc's earnings in the near term, leading to the downgrade by the Bank of America analyst. This is likely to put downward pressure on the stock in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
United Rentals, Inc (URI) is favored by a Bank of America analyst as a better representation of the rental sector, as it doesn't have exposure to the entertainment industry and offers a higher free cash flow yield.
The Bank of America analyst favors United Rentals, Inc (URI) as it doesn't have exposure to the entertainment industry and offers a higher free cash flow yield. This positive sentiment is likely to put upward pressure on the stock in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80