MKM Partners Reiterates a Buy Rating on Hertz Global Holdings Inc

By Ryan Adsit

In a report released today, Christopher Agnew from MKM Partners reiterated a Buy rating on Hertz Global Holdings Inc (NYSE: HTZ), with a price target of $33. The company’s shares opened today at $26.70.

Agnew commented:

“We Maintain Our Buy Rating. We maintain our Buy rating for the following reasons: (1) We believe the earnings miss and guidance reduction was execution related, not structural and is fixable, we estimate $75-$100mn of headwinds are transitory. (2) The pricing environment is improving and car rental is an industry, in our view, that can and will get pricing in a low growth environment with rising cost pressures (as we believe it has done historically). (3) Even on sharply reduced earnings, HTZ is generating robust FCF and we see a path to its target 3.5x leverage close to the end of 2017. (4) We do not see a risk from the financial maintenance covenants which are more flexible than at first appear. (5) Carl Ichan filed on November 8, he has increased his stake to 33.77%. (6) Although, its long-term margin goals of 16%-18% have now been pushed out, the lower share price now means the bar has been materially lowered too. We believe if the company can achieve similar margins to its very similar peer, i.e.”

According to, Agnew is a 3-star analyst with an average return of 1.4% and a 45.5% success rate. Agnew covers the Services sector, focusing on stocks such as Intercontinental Hotels Group, Morgans Hotel Group Co., and Interval Leisure Group.

Hertz Global Holdings Inc has an analyst consensus of Moderate Buy, with a price target consensus of $52.50.

The company has a one year high of $53.14 and a one year low of $6.95. Currently, Hertz Global Holdings Inc has an average volume of 2.92M.

Hertz Global Holdings, Inc. is an equipment rental companies in the North American equipment rental industry. The company was headquartered in Estero, FL.