Hertz: Jefferies lowers its recommendation on the stock

(CercleFinance.com) - The analyst firm lowers its recommendation on the stock from buy to hold, with a price target of $8.


' EV poses short-term profitability problems for Hertz. EV repair issues, operating expenses and higher DPU will limit near-term profitability' says Jefferies.

The analyst has reduced its EBITDA estimate for 2024 by 35% to around $500 million. We believe that +$815 million will probably prove too optimistic.

' Given that resolving these issues is neither simple nor quick, we have little conviction even in our reduced EBTIDA estimate for 2024, which limits near-term upside."

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