Oppenheimer Cuts Ratings on Hertz Global, 2024 Outlook Remains Uncertain

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Oppenheimer recently downgraded Hertz Global ($NASDAQ:HTZ)’s ratings, causing uncertainty regarding the company’s outlook for 2024. Hertz Global is a global car rental service that offers a wide range of vehicles and services to customers around the world. The company has enjoyed success in the past, but the recent downgrade has created doubts about its future prospects. The downgrade from Oppenheimer is being attributed to the potential for a difficult period in 2024. The company is facing a number of challenges, including increasing competition, rising costs, and the potential for market volatility.

Additionally, the company could face regulatory issues, particularly if new regulations are introduced in the coming years. As a result, investors have become uncertain about the future of Hertz Global and its ability to succeed in a competitive market. As a result of these developments, it remains unclear what the future holds for Hertz Global. The company will need to find ways to remain competitive and continue to provide value to its customers in order to remain successful. It is also likely that the company will need to invest in new technologies and practices in order to remain ahead of the curve. Despite these challenges, investors remain hopeful that Hertz Global can find a way to thrive in the coming years.

Share Price

On Wednesday, shares of HERTZ GLOBAL opened at $8.7 and closed at $9.5, a 7.1% rise from the last closing price of $8.9. This came after Oppenheimer downgraded the company from a ‘Outperform’ to a ‘Perform’ rating, citing an uncertain outlook for 2024. The team at Oppenheimer stated that they believed the company’s future outlook was too uncertain to warrant the previous rating, and that there was a greater likelihood of downward pressure on the stock in the near future. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Hertz Global. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Hertz Global. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Hertz Global. More…

Key Ratios Snapshot

Some of the financial key ratios for Hertz Global are shown below. More…

Analysis

At GoodWhale, we recently conducted an analysis of HERTZ GLOBAL‘s fundamentals and have reached some interesting conclusions. Our Star Chart gave HERTZ GLOBAL an intermediate health score of 5/10 when considering its cashflows and debt – indicating that it may be able to pay off debt and fund future operations. We classified HERTZ GLOBAL as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. Given this classification, we found that HERTZ GLOBAL is strong in medium in growth, profitability and weak in asset, dividend. Given these findings, we believe that HERTZ GLOBAL would likely be of interest to investors looking for a company with steady middle-ground performance. Those investors looking for rapid growth or immediate returns may be less likely to take interest in HERTZ GLOBAL’s current fundamentals. More…

Peers

Hertz Global Holdings Inc, Avis Budget Group Inc, Sixt SE, and Localiza Rent A Car SA are all major competitors in the car rental industry. While Hertz is the largest company in the industry, its competitors are not far behind. Avis Budget Group is the second largest company in the industry, followed by Sixt SE and Localiza Rent A Car SA. All four companies are publicly traded and have a large presence in the car rental industry.

– Avis Budget Group Inc ($NASDAQ:CAR)

Avis Budget Group Inc. is a leading provider of vehicle rental and car sharing services, operating through its Avis and Budget brands. With more than 10,000 rental locations in approximately 180 countries around the world, the company offers a wide variety of car rental, car sharing, and other transportation services. Avis Budget Group is committed to providing excellent customer service and offering competitive prices. The company’s return on equity is -418.64%.

– Sixt SE ($LTS:0NW8)

Sixt SE is a German multinational car rental company with about 3,700 locations in over 100 countries. The company offers a wide range of rental cars and services for both business and leisure travelers. The company has a strong focus on customer service and offers a number of unique features, such as a loyalty program and a mobile app.

Sixt SE has a market cap of 3.79B as of 2022. The company has a strong focus on customer service and offers a number of unique features, such as a loyalty program and a mobile app. The company’s return on equity (ROE) is 22.19%.

– Localiza Rent A Car SA ($OTCPK:LZRFY)

Localiza Rent A Car SA is a Brazilian car rental company. The company has a market capitalization of 13.39 billion as of 2022 and a return on equity of 32.33%. Localiza Rent A Car SA operates in Brazil, Argentina, Chile, Colombia, and Peru. The company offers a wide range of car rental services, including compact cars, sedans, SUVs, vans, and luxury cars. Localiza Rent A Car SA has a fleet of over 1,000 car rental locations across Brazil.

Summary

Hertz Global has seen its ratings cut by Oppenheimer, with a rough road expected through 2024. Despite this, the stock price moved up on the same day. This is likely due to investors predicting that the company’s prospects will improve in the long-term despite the short-term headwinds.

Investors should carefully consider the current environment before investing in Hertz Global, as there is some risk associated with the stock. It is important to understand that the long-term outlook for the company could be better than the short-term outlook, and that could lead to better returns for investors.