Hertz stock price forecast: Jefferies sees a 30% upside

Hertz Global Holdings Inc (NASDAQ: HTZ) has already gained about 20% in just over a month but a Jefferies analyst is convinced it’s not out of room to run just yet.

Hertz stock could climb to $24

On Wednesday, Stephanie Moore recommended that investors buy Hertz stock as it has upside to $24 that suggests about a 30% increase from here.  

The analyst expects vehicle supply to remain constrained and limited competition, she added, will likely help the car rental company unlock further upside in pricing and margins.

Our sense is that margins can be sustained in the low-DD to mid-DD%+ range (vs. ~7% avg. pre-COVID) from structurally improved pricing and a more ROA focused mindset.

Hertz is scheduled to report its Q2 earnings on July 27^th. Consensus is for it to earn 68 cents a share versus $1.22 per share a year ago.

Moore likes Hertz for an EV opportunity

Stephanie Moore is particularly bullish on Hertz stock for the higher-margin TNC business of the Florida-based company.

Hertz Global has a separate fleet of Tesla vehicles that it rents out to Uber drivers at select TNC locations. According to the Jefferies analyst:

With this business, Hertz now operates the largest EV fleet in the world. We see structural benefits from a maintenance and pricing perspective related to a higher mix of EVs.

Note that Hertz also has EV deals with other automakers, including Polestar and General Motors Co. Last year, it partnered with BP plc as well to build a network of EV chargers across the United States as Invezz reported here.