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Investing.com - Susquehanna has raised its price target on Hertz Global (NASDAQ:HTZ) to $7.00 from $4.00 while maintaining a Neutral rating on the stock. This comes as the rental car industry shows mixed signals, with competitor Avis Budget Group (NASDAQ:CAR) currently trading near $143.83, up 78.4% year-to-date according to InvestingPro data.
The research firm notes that Hertz is in the early stages of strategic change, focusing on vehicle sales and digital channels as part of its transformation efforts.
Susquehanna expects U.S. leisure and business volumes to remain solid through year-end, with several demand catalysts on the horizon for fiscal year 2026, including the FIFA World Cup, America250 celebrations, and midterm elections.
Despite these positive factors, the firm cautions that strategic change takes time, drawing parallels to U.S. airlines that began their premium journeys more than a decade ago.
Susquehanna remains unconvinced that Hertz’s current tactics can support less volatile daily profit units through a business cycle, or whether the company can successfully de-commoditize rental units to consistently drive better revenue per day outcomes.
In other recent news, Avis Budget Group Inc. reported its third-quarter earnings for 2025, exceeding analyst expectations. The company achieved an earnings per share (EPS) of $10.11, surpassing the forecasted $8.24, resulting in a 22.69% surprise. Revenue for the quarter reached $3.52 billion, slightly above the anticipated $3.46 billion. These results highlight the company’s strong financial performance. Additionally, the earnings announcement was followed by a 1% increase in Avis shares during pre-market trading. This development reflects a positive sentiment among investors. The earnings surprise and revenue figures are critical data points for investors assessing the company’s recent performance.
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