Deutsche Bank Downgrades Hertz Global (HTZ) to Hold
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Deutsche Bank downgraded Hertz Global (NYSE: HTZ) from Buy to Hold with a price target of $24.00 (from $59.00). The change follows the release of Q3 results and guidance. Analyst Chris Woronka called the report a "debacle."
"The primary reason for our downgrade is a belief that the stock will reflect a newfound lack of confidence in earnings visibility and the company’s ability to provide achievable guidance. After the close tonight, HTZ reported weak 3Q results and slashed FY16 guidance. Although a guide-down in full-year U.S. revenue expectations is a negative in and of itself, the larger issue is related to fleet depreciation; HTZ cited a “downward revision of forward projections of residual values based on third party data.” At this point, there are more questions than answers, and our view is that it is now extraordinarily difficult for investors to have conviction in continued progress on the turnaround story given these latest disappointing and surprising developments," said the analsyt.
Shares of Hertz Global closed at $35.74 yesterday.
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