(CercleFinance.com) – The analysis office lowers its recommendation on the stock from buy to hold with a price target of $8.
‘EV poses short-term profitability problems for Hertz. EV repair issues, operating expenses and higher DPUs will limit near-term profitability,’ says Jefferies.
The analyst cut his 2024 EBITDA estimate by 35% to around $500 million. ‘We think +$815 million will likely prove too optimistic.’
‘Given that fixing these issues is neither simple nor quick, we do not have much conviction even in our reduced estimate of EBTIDA for 2024, which limits near-term upside.’
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