Northcoast downgrades Hertz to Sell on ‘too rich’ valuation

Northcoast downgraded Hertz (HTZ) to Sell from Neutral with a $5 price target The recent share rally is a function of “market dynamics,” creating a valuation that is “simply too rich for the current fundamentals,” the analyst tells investors in a research note. Northcoast is not “overly excited” about Hertz’s current operating environment. While demand is steady, pricing is a “bit underwhelming” while the used car market is likely running better than expected, contends Northcoast. When factoring in Hertz’s corporate debt and the potential for it to increase in the near term, the stock is “more overvalued than undervalued,” it says. Hertz in premarket trading is up 2% to $7.30.