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Investing.com - Goldman Sachs has reiterated its Sell rating and $3.00 price target on Hertz Global (NASDAQ:HTZ) following the car rental company’s recent quarterly results. This target represents a significant 55% downside from the current price of $6.73, aligning with InvestingPro data showing 3 analysts have recently revised their earnings expectations downward.
The investment bank noted that while Hertz slightly beat expectations on EBITDA, causing the stock to outperform, longer-term financial projections may need to be reduced due to ongoing industry challenges. Despite the recent outperformance, Hertz’s trailing twelve-month EBITDA stands at just $31 million.
Goldman Sachs highlighted that Hertz’s third-quarter revenue per day (RPD) decline in the Americas was greater than expected, suggesting pricing pressure that could continue as Hertz and competitors expand their fleets next year. This pricing pressure is evident in the company’s weak gross profit margin of 11.11%.
The firm expressed skepticism about Hertz’s ability to achieve its targeted 3-6% EBITDA margin by 2026, with Goldman’s models projecting only 2.4% during that period.
Despite acknowledging merit in Hertz’s long-term turnaround strategy, Goldman Sachs maintained its cautious stance, citing the need for more concrete evidence that normalized EBITDA can sustain higher levels and that RPD will show positive momentum. Interestingly, InvestingPro data shows the stock has posted impressive returns of 83.9% year-to-date and 127.4% over the past year, despite these fundamental concerns. According to InvestingPro’s Fair Value assessment, the stock appears overvalued at current levels.
In other recent news, Hertz Global Holdings Inc. reported its Q3 2025 earnings, which surpassed expectations with an earnings per share (EPS) of $0.12, compared to the forecasted $0.07. The company’s revenue reached $2.5 billion, exceeding projections of $2.41 billion. This earnings report highlights the company’s strong financial performance in the recent quarter. Analysts had projected lower figures, making the actual results a positive surprise for investors. The earnings beat reflects well on Hertz’s operational efficiency and market position. These developments are crucial for stakeholders evaluating the company’s financial health and future trajectory.
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