Hertz initiated with a Buy at Jefferies

Jefferies analyst Stephanie Moore initiated coverage of Hertz with a Buy rating and $24 price target. The analyst believes the company’s pricing and margins “can run structurally higher” versus pre-COVID levels, driven by a “dysfunctional oligopoly turned functional” and continued supply constraints. Hertz’s revenue per day will moderate some as the post- COVID supply/demand imbalance improves, but it can sustain pricing in the low $60s, a material step up from the five-year pre-COVID average of $43, the analyst tells investors in a research note. The firm sees a structurally improved margin profile for Hertz.