Morgan Stanley Cuts Hertz Price Target to $3.50, Keeps Equal Weight

On June 30, Morgan Stanley analyst Andrew Percoco lowered the price target on Hertz Global Holdings (NASDAQ:HTZ) to $3.50 from $5, while maintaining an Equal Weight rating. The revision follows a reduction in the firm's 2026 adjusted EBITDA estimate.

Rating Change

• Previous Price Target: $5.00
• New Price Target: $3.50
• Rating: Equal Weight (unchanged)

Analyst Rationale

The price target cut reflects weaker expectations for Hertz's operational performance, as Morgan Stanley lowered its 2026 EBITDA estimate. The exact reason was not specified but may stem from competitive pressures or challenges in the car rental market.

Context

This adjustment comes after Hertz's stock has shown weak performance recently. No other analysts have issued similar comments yet. The stock is listed among "get rich quick" stocks by some sources, but the downgrade signals analyst caution.

What This Means

While the price target cut indicates a cautious near-term view on Hertz, maintaining an Equal Weight rating suggests no urgent need to change the recommendation. Investors should monitor the company's developments and the car rental sector.