HTZ - Hertz's Has A Long Road To Recovery & Margin Challenges Goldman Sachs Downgrades Stock | Benzinga
Goldman Sachs analyst Lizzie Dove downgraded the shares of Hertz Global Holdings, Inc (NASDAQ:HTZ) from Neutral to Sell and lowered the price target from $8 to $7.
The analyst said consensus estimates of U.S. RPD pricing of -3% and International RPD pricing of +1.5% y/y in the first quarter are too high.
This matters, as pricing has a flow through to EBITDA of as much as 90%, in the analyst's view, meaning small changes in pricing will have a material impact on future estimates.
The analyst also noted that HTZ's fleet age may pose a risk to both pricing and residual values.
Not only do the older cars make it tougher ...