Wells Fargo Comments on Hertz Global (HTZ) Decline

March 3, 2014 10:18 AM EST
Get Alerts HTZ Hot Sheet
Price: $21.01 +1.20%

Rating Summary:
    1 Buy, 9 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Hertz Global (NYSE: HTZ) stock declined on Monday after the company filed an extension for its 10-K. The Company recently implemented an enterprise resource planning (ERP) system to improve its financial disclosure controls. As a result of this implementation, the Company encountered significant issues during the preparation of its annual financial statements.

Analyst Richard M. Kwas of Wells Fargo commented on developments.

"We expect the shares to come under pressure this morning. Historically speaking, the company has typically released Q4 results last week (last week of February). The lack of investor communication from the company regarding a Q4 release date had created speculation about a potential HERC transaction. Today's release certainly throws some cold water on that assertion in the near-term, although we continue to believe a separation is still in play for the company. We note the company hired a new CFO in December, which may have complicated the situation. In our view, downside potential is likely above $25/share (the 200day moving average is $25.19). We would use significant weakness to add or build a position," said Kwas.

Wells Fargo has an Outperform rating on Hertz Global (NYSE: HTZ)

For an analyst ratings summary and ratings history on Hertz Global click here. For more ratings news on Hertz Global click here.

Shares of Hertz Global closed at $28.01 yesterday.

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