Herc Holdings price target lowered to $150 from $170 at KeyBanc

KeyBanc analyst Ken Newman lowered the firm’s price target on Herc Holdings to $150 from $170 to reflect new estimates, while keeping an Overweight rating on the shares. The firm notes Herc Holdings underperformed following its Q3 results and narrowed FY23 guidance as challenges in the Studio Entertainment business continue to weigh on results amid the ongoing actors strike. Despite the modest miss and guide down, KeyBanc thinks core equipment rental demand remains resilient, as evidenced by stronger rental rates and resilient dollar utilization when normalizing for the Cinelease business. Additionally, the firm thinks management’s exploration of strategic alternatives for Cinelease could help to simplify the company’s portfolio long-term and help fund further M&A once a deal is reached.