Wells Fargo Raises Price Target on Hertz (HTZ)
Wells Fargo maintained an Outperform rating on Hertz Global (NYSE: HTZ) and raised its price target to $30-$33 (from $28-$30). The change follows in-line Q2 results on Monday.
"In our view HERC's strong operating performance was impressive and the growth in North American construction revenues (21% yr/yr growth) bodes well for the future considering non-residential spending has declined on a year-to-date basis and construction is HERC's biggest vertical. As such, we continue to believe the company has good earnings upside potential," said analyst Richard M. Kwas.
"If worldwide RPD expands at a 1.9% yr/yr clip in H2 (consistent with H1), we estimate it would add approximately $0.09 to H2 EPS that is not currently included in the company’s guidance. If HERC yr/yr pricing continues to grow at a 4% rate in H2, we estimate it would contribute $0.01 of incremental EPS versus the 2013 guidance. Further, we believe the company's revised RAC depreciation guidance may have upside potential (every 1% improvement would add $0.01 in EPS to H2 earnings)," added Kwas.
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 $26.23 yesterday, with a 52 week range of $10.85-$27.75.
"In our view HERC's strong operating performance was impressive and the growth in North American construction revenues (21% yr/yr growth) bodes well for the future considering non-residential spending has declined on a year-to-date basis and construction is HERC's biggest vertical. As such, we continue to believe the company has good earnings upside potential," said analyst Richard M. Kwas.
"If worldwide RPD expands at a 1.9% yr/yr clip in H2 (consistent with H1), we estimate it would add approximately $0.09 to H2 EPS that is not currently included in the company’s guidance. If HERC yr/yr pricing continues to grow at a 4% rate in H2, we estimate it would contribute $0.01 of incremental EPS versus the 2013 guidance. Further, we believe the company's revised RAC depreciation guidance may have upside potential (every 1% improvement would add $0.01 in EPS to H2 earnings)," added Kwas.
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 $26.23 yesterday, with a 52 week range of $10.85-$27.75.