Morgan Stanley Lowers Price Target for Hertz Global Amid Market Pressures
Money

Morgan Stanley Lowers Price Target for Hertz Global Amid Market Pressures

authorBy Ramit Sethi
DateJul 13, 2026
Read Time2 min
This report details recent developments concerning Hertz Global Holdings, Inc. (HTZ), focusing on its stock performance, financial outlook, and an updated analyst rating from Morgan Stanley. It highlights the factors contributing to the company's recent stock decline and the revised expectations from financial experts.

Navigating Volatility: Hertz Global's Journey Through Market Challenges and Analyst Revisions

Hertz Global's Recent Market Performance and Future Projections

Hertz Global Holdings, Inc. (HTZ) has recently experienced a significant downturn in its stock value, plummeting by approximately 62% over the past month to unprecedented lows. Despite this sharp decline, market analysts are optimistic, forecasting a potential upside of over 143% from its current trading price. This projection positions HTZ as a compelling opportunity among stocks currently at their lowest historical valuations.

Factors Contributing to the Stock's Decline

The primary catalysts for Hertz's recent stock depreciation include a substantial capital-raising initiative and a downward revision of its earnings guidance. During the fiscal Q1 2026 earnings call, management reaffirmed their full-year EBITDA margin guidance of 3% to 6%. However, they also acknowledged that prevailing softness in the used car market could push second-quarter depreciation costs towards an estimated $300 per unit, impacting profitability.

Morgan Stanley's Revised Outlook for Hertz Global

On June 30, Morgan Stanley analyst Andrew Percoco adjusted the price target for Hertz Global Holdings, Inc. (NASDAQ:HTZ) from $5 to $3, while maintaining a 'Hold' rating on the shares. This revision was largely driven by a notable reduction in EBITDA estimates. Percoco slashed his 2026 adjusted EBITDA forecast by 40% and his 2027 forecast by 17%, attributing these cuts to higher-than-anticipated depreciation per unit, which is exerting greater pressure on profitability than previously modeled.

An Overview of Hertz Global Holdings, Inc.

Hertz Global Holdings, Inc. is a Florida-based vehicle rental company with a rich history dating back to its founding in 1918. The company operates through two primary segments: Americas RAC (Rental Car) and International RAC, serving a broad global customer base in the mobility solutions sector.

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