Hertz (HTZ, Financial) saw its stock price soar by 56% on Wednesday, following news of a substantial investment by Bill Ackman (Trades, Portfolio)’s Pershing Square. According to a recent regulatory filing, Pershing Square has increased its stake in the car rental company to 19.8%, making it Hertz's second-largest shareholder. The investment was made through a combination of shares and swaps.
The disclosure was delayed as Pershing Square obtained a special exemption from the U.S. Securities and Exchange Commission, allowing them to keep the increased stake under wraps until the recent filing. This revelation has sparked significant interest in Hertz, triggering a further 22% rise in pre-market trading. As a result, Hertz's shares climbed an additional $1.28, reaching $6.99.
This bold move by Ackman’s firm highlights a growing confidence in Hertz's potential, positioning Pershing Square as a key player in the company's future trajectory. Investors are watching closely to see how this development will influence Hertz's performance in the competitive car rental market.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Hertz Global Holdings Inc (HTZ, Financial) is $3.31 with a high estimate of $4.45 and a low estimate of $2.70. The average target implies an downside of 42.08% from the current price of $5.71. More detailed estimate data can be found on the Hertz Global Holdings Inc (HTZ) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, Hertz Global Holdings Inc's (HTZ, Financial) average brokerage recommendation is currently 3.4, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Hertz Global Holdings Inc (HTZ, Financial) in one year is $19.51, suggesting a upside of 241.68% from the current price of $5.71. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Hertz Global Holdings Inc (HTZ) Summary page.
