Hertz Global (HTZ) Update Contains No Real Surprise: Deutsche Bank

Deutsche Bank maintained a Hold rating on Hertz Global (NYSE: HTZ) with a price target of $22. Yesterday the company filed an 8-K with an update on Q1 results. In the view of analyst Chris Woronka, there was no real surprise in the release.

Woronka explained, "Bottom line: there were no true game changers in the release, in our view, and we believe most investors are likely to remain on the sidelines until the financial restatement process is complete (still slated for mid-year). HTZ did find an incremental $30m of restatements since the last update, bringing the cumulative total to $183m from 2011-'13."

"HTZ noted that it remains committed to the HERC (Equipment Rental) spinoff but that it won't be effected until after the restatement process is complete and separate audited financials for that unit are done (at this point, we view the spin as a potential 2016 event). HTZ also said it plans to institute a system-wide price increase in the US effective June 14, with rates going up by $3-$5 per day and $10-$20 per week (off-airport / on-airport) based on off-airport, including weekend rates. While encouraging on the surface, recall that on Dec. 23, 2014 HTZ announced plans to increase rates effective Jan. 1, 2015. We believe it's too early to form an opinion on the effectiveness of this latest announcement and caution that many factors will determine whether it ultimately plays out as HTZ hopes," added the analyst.

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 $19.56 yesterday.

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