Hertz initiated with a Neutral at Goldman Sachs

Goldman Sachs initiated coverage of Hertz with a Neutral rating and $10 price target. Following two years of tight supply leading to record high rental rates and surging residual values, EBITDA has started to normalize in the rental car space, the analyst tells investors in a research note. The firm believes consensus estimates of pricing in 2025 remaining 30% over 2019 levels are too high, and that greater focus on company-specific growth is more warranted later cycle. Hertz’s electric vehicle strategy has proved costly thus far, but there are steps the company can take to materially improve its EBITDA trajectory, contends Goldman. As such, it sees a potential catalyst path to drive share upside.