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Mario Gabelli Stays Bullish on Herc Holdings (HRI) Despite Near-Term Headwinds
Yahoo Finance· 2026-03-11 21:23
Group 1 - Herc Holdings Inc. (NYSE:HRI) is considered one of the best stocks to buy according to billionaire Mario Gabelli [1] - As of the end of Q4 2025, Herc Holdings accounted for 1.52% of GAMCO Investors' 13F portfolio value, with a position worth $158.3 million, making it the fifth-largest holding [2] - GAMCO Investors has held shares of Herc Holdings since at least Q3 2016, reducing its shareholding by around 4% in Q4 2025, now owning approximately 1.07 million shares [2] Group 2 - Despite the reduction in shares, GAMCO Investors remains positive on Herc Holdings' outlook, citing strong quarterly performance supported by resilient rental demand and robust free cash flow generation [3] - The company is well-positioned to benefit from infrastructure-related spending and fleet optimization [3] - In 2025, Herc Holdings' stock lost around 22% of its value, with a further decline of over 18% year-to-date in 2026, attributed to revenue growth and margin pressures [5] Group 3 - 70% of analysts covering Herc Holdings rate the stock as a strong Buy, with a consensus 1-year median price target of $189, indicating a potential 65% upside from current levels [6] - Herc Holdings is an equipment rental supplier serving construction, industrial, and infrastructure markets across North America, offering a wide range of rental equipment [7]