Hertz Gets Downgraded, JPMorgan Warns Of Bumpy Road Ahead For Car Renter
Portfolio Pulse from Anthony Noto
JPMorgan has downgraded Hertz Global Holdings Inc (NASDAQ:HTZ) to 'Underweight', citing challenges such as declining EBITDA, inability to generate positive free cash flow, and a $1 billion loss from its green initiative. Hertz's partnerships and potential earnings growth were overestimated, leading to a scrapped $5 price target for December 2024. The company faces a $272 million bill related to its past bankruptcy, and is not expected to return to normalized earnings until after 2026.
October 21, 2024 | 8:13 pm
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Hertz has been downgraded by JPMorgan to 'Underweight' due to declining EBITDA, inability to generate positive free cash flow, and a $1 billion loss from its green initiative. The $5 price target for December 2024 has been scrapped, and the company faces a $272 million bill related to its past bankruptcy.
JPMorgan's downgrade and removal of the $5 price target indicate a negative outlook for Hertz. The company's financial struggles, including declining EBITDA and inability to generate positive free cash flow, are compounded by a significant loss from its green initiative and a large bankruptcy-related bill. These factors are likely to negatively impact Hertz's stock price in the short term.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100