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Investing.com - BofA Securities has reiterated its Underperform rating and $3.20 price target on Hertz Global (NASDAQ:HTZ) following the company’s second-quarter 2025 results. According to InvestingPro data, the company currently shows weak financial health with an overall score of 1.49 out of 5, reflecting significant operational challenges.
Hertz reported adjusted EBITDA of $1 million for the second quarter, surpassing both BofA’s estimate of negative $64 million and consensus expectations of negative $20 million.
The earnings beat was primarily attributed to improved fleet utilization, lower vehicle depreciation costs, and reduced direct operating expenses, which offset disappointing revenue per day (RPD) performance. In the Americas, depreciation per unit was $248 per month compared to BofA’s estimate of $296 per month.
Hertz’s fleet depreciation costs benefited from fleet refresh initiatives, better residual values, and a lower average number of vehicles. The company reported liquidity of $1.4 billion, exceeding BofA’s expectation of $1.1 billion.
BofA maintained its negative outlook on Hertz stock, citing "macroeconomic uncertainty and signs of travel demand waning." The firm noted that Hertz’s second-quarter liquidity was bolstered by a real estate sale-leaseback, letters of credit, and additional fleet debt, while the company had not sold any common stock under its ATM Program as of the end of June.
In other recent news, Hertz Global Holdings (OTC:HTZGQ) has made significant financial maneuvers, including amending its European asset-backed securitization platform to issue €100 million in new Class C Notes. These notes carry a fixed interest rate of 10.54% and are set to mature in April 2027, as per the company’s filing with the Securities and Exchange Commission. In corporate governance developments, stockholders at Hertz’s annual meeting elected four directors to serve on its board for a three-year term. The directors, including Francis S. Blake and Vincent J. Intrieri, were elected with a significant majority of votes.
Analyst actions have also been noteworthy, with Jefferies lowering its price target for Hertz from $7.00 to $6.00, maintaining a Hold rating due to underwhelming first-quarter earnings and weaker revenue figures. Despite this, Jefferies acknowledges Hertz’s effective fleet refresh strategy, which may improve depreciation per unit in the future. JPMorgan has reiterated its Underweight rating following Hertz’s larger-than-expected EBITDA loss of $325 million in the first quarter, which surpassed both JPMorgan’s and Bloomberg’s estimates. The loss was driven by weaker sales trends and higher vehicle interest and SG&A expenses, though partially offset by favorable vehicle depreciation.
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