From Financial Modeling Prep: 2024-10-21 13:59:00

Hertz Global Holdings (NASDAQ:HTZ) shares dropped over 8% today after JPMorgan downgraded the company to Underweight due to softer travel trends and fleet management challenges. JPMorgan revised 2025 EBITDA forecast to $325 million, down from $425 million, projecting $400 million for 2026, indicating a longer recovery period for Hertz.

Concerns over potential fleet churn driving up depreciation costs and reducing EBITDA were highlighted by JPMorgan. The bank also pointed out Hertz’s financial leverage and potential litigation costs from past bankruptcy, favoring Avis Budget as a stronger operator with less leverage and better value.

Softening travel metrics post-earnings report raised worries about transaction volume and revenue per day decline for Hertz. While the recent increase in the Manheim Index could temporarily boost earnings through higher residual values, JPMorgan warned of quicker fleet turnover negatively impacting long-term profitability.



Read more at Financial Modeling Prep:: JPMorgan Downgrades Hertz Global Holdings Amid Tra…