Morgan Stanley Cuts PT on Hertz (HTZ) to $5 From $5.50 – Here’s Why

Company Overview - Hertz Global Holdings Inc. operates in the vehicle rental business through its brands Hertz, Dollar, and Thrifty, with operations divided into the Americas Rental Car (RAC) and International Rental Car (RAC) segments [5] Financial Performance - For fiscal Q4, Hertz reported revenue of $2.0 billion, and for the full year 2025, revenue totaled $8.5 billion, marking the strongest year-over-year revenue performance since Q1 2024 [3] - The company indicated improvements in Revenue per Unit (RPU) and Revenue Per Day (RPD) metrics, with positive momentum expected to continue into fiscal Q1 2026 [4] Market Outlook - Hertz anticipates mid-single digit revenue growth, supported by ongoing internal revenue management initiatives and a favorable industry pricing environment [4] - Morgan Stanley has adjusted its price target for Hertz to $5 from $5.50, maintaining an Equal Weight rating, citing weaker than expected results and guidance [1]