Hertz downgraded to Perform from Outperform at Oppenheimer

Oppenheimer downgraded Hertz (HTZ) to Perform from Outperform as the firm believes next year will be a transition year for the company. Hertz will face several headwinds in 2024, including significant ongoing challenges to its EV initiative, higher vehicle interest expense, and higher DPU. As a result, the firm lowers 2024 EBITDA to $823M, from $1,215M. On Oppenheimer’s new estimates, Hertz trades almost in line with Avis Budget (CAR), a valuation the firm thinks does not adequately account for the inherent risks.