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Is Hertz (HTZ) Quietly Redefining Its Investment Story Through Digital Sales And Fresh Investor Interest?

Simply Wall St · 6d ago
  • Recently, Hertz Global Holdings drew attention after Susquehanna revised its outlook on the company, reflecting market reactions to Hertz’s ongoing transformation toward vehicle sales and digital channels.
  • The news also intersected with renewed interest from high-profile investors such as Bill Ackman, underscoring how external confidence can influence perceptions of Hertz’s repositioning efforts.
  • Next, we’ll examine how Hertz’s intensified focus on digital and vehicle sales channels might influence its existing investment narrative.

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Hertz Global Holdings Investment Narrative Recap

To own Hertz today, you need to believe its push into digital channels and vehicle sales can eventually turn an unprofitable, highly leveraged business with negative equity into a sustainably profitable one. Susquehanna’s higher price target and the attention from Bill Ackman may shape sentiment in the short term, but they do not materially change the key near term catalyst of executing on this transformation or the central risk around balance sheet fragility and earnings volatility.

Among recent developments, Hertz’s Q3 2025 results, which showed US$2,478 million in revenue and a swing to quarterly net income after prior large losses, are most relevant here. This performance sits alongside its younger fleet and digital initiatives and is likely to be watched closely as investors weigh whether operational changes in areas like vehicle sales channels and revenue management can consistently offset the risks tied to its history of losses and volatile results.

Yet behind the recent optimism, one issue investors should not overlook is the company’s negative shareholders’ equity and what that could mean for...

Read the full narrative on Hertz Global Holdings (it's free!)

Hertz Global Holdings' narrative projects $8.8 billion revenue and $424.8 million earnings by 2028. This assumes revenues will shrink by 0.8% per year and requires an earnings increase of about $2.9 billion from current earnings of -$2.5 billion.

Uncover how Hertz Global Holdings' forecasts yield a $5.02 fair value, a 11% downside to its current price.

Exploring Other Perspectives

HTZ 1-Year Stock Price Chart
HTZ 1-Year Stock Price Chart

Six fair value estimates from the Simply Wall St Community span an extremely wide range from US$0.00 to over US$11,000 per share, showing how far apart individual views can be. Against that backdrop, the central question remains whether Hertz’s push into digital and vehicle sales can realistically offset its history of losses and fragile balance sheet, so it makes sense to weigh several of these perspectives before forming a view.

Explore 6 other fair value estimates on Hertz Global Holdings - why the stock might be a potential multi-bagger!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.