Hertz share price boost could help company raise capital, says BofA

BofA notes that after Pershing Square filed a Form 13F before market open yesterday indicating that it acquired 4.1% of Hertz (HTZ) shares as of the end of 2024, CNBC subsequently reported that Pershing Square has now acquired a 19.8% stake in Hertz through a combination of shares and swaps. One potential positive outcome from Pershing Square’s stake is that the investor could provide much-needed capital to fund the business, BofA says. The rise in shares, if sustained, also could give the company more flexibility to use the equity markets, adds the firm, which continues to think Hertz will need to raise $500M-plus in additional capital based on its forecast for free cash flow usage of about $920M in 2025 and about $300M in 2026. BofA maintains an Underperform rating on Hertz with a $2.70 price target