MKM Partners Reiterates a 'Buy' on Hertz Global (HTZ); Combination Accetive; Deal Positive for CAR Too

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MKM Partners reiterates a 'Buy' on Hertz Global (NYSE: HTZ) price target of $20.00.

Analyst, Chris Agnew, comments on the announcement that Hertz with acquire Dollar Thrifty (NYSE: DTG) for $87.50/share.

"We estimate the proposed transaction is $0.30-$0.35 accretive to EPS (run-rate), subject to financing, and we believe pro-forma 2013 EPS would be $2.02 versus our current estimate of $1.69. The current valuation of 8x 2013 (P/E) implies a share price of $16. We believe the multiple could and should get a boost given the overhang from deal uncertainty and deal fatigue."

Agnew also believes that Budget (NYSE: CAR)(Buy-rated $24) will benefit from the news as the industry consolidates

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 $13.15 yesterday, with a 52 week range of $7.80-$16.64.

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