Hertz Global Holdings, Inc (NYSE:HTZ) stock was down on Thursday following a downgrade from an analyst at Morgan Stanley.
Morgan Stanley analyst Adam Jonas updated his stance on Hertz Global Holdings, Inc. Previously, he gave HTZ stock an “Equal Weight” rating. However, this new update drops the rating for the stock down to “Underweight.”
Despite lowering his rating for Hertz Global Holdings, Inc, the analyst actually increased his price target for the stock. Jonas’ new price target for HTZ stock is $14. His previous price target for the car rental company’s stock was $12. HTZ stock was sitting at $23.94 when the markets closed on Wednesday.
Jonas says that his main reason for lowering the rating of HTZ stock has to do with valuation. While the stock has been on the rise over the last three months, it is still down slightly year-to-date. The recent rise in the stock came after it dropped 60% during the first half of the year, reports TheStreet.com.
“Destructive weather events present a material short-term increase to pricing but we believe this is more than in the share price,” Jonas said in a statement obtained by Barron’s. “Structural issues with the car rental model remain.”
Hertz Global Holdings, Inc last reported earnings on Aug 8. 2017. This losses per share of 63 cents on revenue of $2.224 billion. Wall Street was expecting losses per share of 18 cents on revenue of $2.22 billion. During the same time last year, HTZ reported earnings per share of 41 cents on revenue of $2.28 billion.
HTZ stock was down 11% as of noon Thursday.
As of this writing, William White did not hold a position in any of the aforementioned securities.