Sell Rating for Hertz Global Due to Financial Underperformance and Market Uncertainties

Analyst John Babcock of Bank of America Securities maintained a Sell rating on Hertz Global (HTZ – Research Report), retaining the price target of $2.70.

John Babcock’s rating is based on Hertz Global’s recent financial performance and market conditions. The company’s first-quarter results fell short of expectations, with adjusted EBITDA significantly below both Bank of America’s and consensus estimates. This shortfall was primarily due to increased corporate spending and higher non-vehicle interest and other expenses. Additionally, the company’s free cash flow usage was higher than anticipated, indicating potential liquidity concerns.
Furthermore, Hertz Global faces macroeconomic uncertainties and signs of waning travel demand, which could lead to a loss of market share. The company’s international segment underperformed, and although the Americas segment was in line with forecasts, pricing and transaction days decreased. Liquidity has tightened, and the company has not reaffirmed its 2025 outlook, reflecting market uncertainty. These factors contribute to the Sell rating, as they suggest potential challenges for Hertz Global moving forward.

HTZ’s price has also changed dramatically for the past six months – from $3.660 to $6.940, which is a 89.62% increase.