Hertz continues to face a challenging year, says Oppenheimer

Oppenheimer analyst Ian Zaffino says Hertz continues to face a challenging year as it works through elevated depreciation expense, a fleet refresh, and higher direct operating expenses. The company has accelerated its fleet refresh and sale of electric vehicles, which creates a near-term headwind in the form of materially higher depreciation per unit expense, the analyst tells investors in a research note. However, the firm points out that the demand environment remains solid. It remains on the sidelines with a Perform rating and no price target, citing the company’s “substantial” cost headwinds and ongoing business transformation.