©Reuters.Rental car company Hertz (HTZ) stock downgraded by JP Morgan and Deutsche Bank
Hertz Global Holdings (HTZ) stock was downgraded twice today, with both JPMorgan and Deutsche Bank refraining from trading.
JPMorgan analysts downgraded their recommendation on the rental car company from “overweight” to “neutral.”
They lowered their forecasts, expressing concern about the lack of positive catalysts in the short term, citing weaker underlying earnings in the fourth quarter and the potential impact on 2024.
Analysts said, “The stock is certainly trading at a discount based on normalized non-year earnings (our estimates have not declined proportionately to the stock price), but after lowering our estimates… “We see little upside in the short term,” the analysts said.
As such, they currently believe that “Hertz in 2024 will not grow earnings (excluding one-time charges in Q4 2023) and will not generate positive free cash flow. This suggests that there is little chance of it happening.”
Similarly, Deutsche Bank analysts downgraded their rating from “buy” to “hold.”We exchanged ratings when upgrading avis budget Group (NASDAQ:) buys HTZ while devaluing it.
“Simply put, we see a disproportionally high risk/reward divergence between these two stocks. “We believe investors have little confidence in the company's true run-rate earnings power over the next few years due to its historic EV strategy,” analysts wrote in a note. .
HTZ was also downgraded by Jefferies last week.
HTZ stock was down 1% in early Thursday trading, but CAR was up 3.3%.
