Goldman Sachs analyst Lizzie Dove downgraded Hertz to Sell from Neutral with a price target of $7, down from $8. The analyst believes the full extent of the company’s pricing, cost and unit pressures have not been priced into the shares. Hertz’s right-sizing of its fleet and stabilizing pricing may take longer and require more investment than previously expected, particularly with a fleet that appears 50% older than pre-pandemic, the analyst tells investors in a research note. In the meantime, Goldman’s model expects trends to get worse before they get better, with no free cash flow generation in 2024, which it expects to remain a continued focus for investors.
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