Pershing Square has significantly increased its investment in Hertz (HTZ, Financial), now holding a 19.8% stake following its earlier filing for a 4.1% share ownership. This substantial acquisition combines both direct shares and financial swaps. Analysts at Bank of America (BofA) suggest that this move could be beneficial for Hertz, as Pershing Square might inject essential capital to support the business operations.
This influx of capital from a prominent investor could potentially stabilize Hertz’s financial situation, especially as BofA indicates the company may need to secure over $500 million in additional capital. The forecast reflects expected free cash flow consumption of around $920 million in 2025 and roughly $300 million in 2026.
Despite these developments, BofA maintains its Underperform rating for Hertz, setting a price target of $2.70. The firm also notes that should Hertz's stock prices rise, it might enhance the company's ability to maneuver through equity markets more flexibly. This increased financial agility could be crucial as Hertz strategizes to address its capital needs going forward.
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.
