Hertz Stock: A Battle for Momentum Amid Diverging Views

Hertz Global Holdings finds itself at a critical crossroads, with its stock performance caught between operational headwinds and cautious optimism. While the rental car giant benefits from positive sector sentiment, market analysts remain deeply divided about its future trajectory.

All attention now focuses on the third-quarter 2025 financial results scheduled for release tomorrow. This crucial report will determine whether Hertz's strategic initiatives are yielding tangible results or if recent stock gains represent merely temporary enthusiasm. The announcement will reveal if the company has genuinely navigated its way through challenges or faces continued fundamental weaknesses.

Market Experts Divided on Outlook

Financial institutions present conflicting assessments of Hertz's prospects. Jefferies maintains its "Hold" rating with a $6.00 price target, acknowledging progress toward the company's $1 billion EBITDA goal. Susquehanna raised its price objective to $6.00 but kept a "Neutral" stance, citing persistent pricing pressures and declining daily revenue metrics. Taking the most bearish position, Goldman Sachs reaffirmed its "Sell" recommendation with a $3.00 price target, emphasizing its unchanged negative long-term outlook.

• Susquehanna: Price target increased to $6.00, "Neutral" rating maintained
• Goldman Sachs: "Sell" rating reiterated with $3.00 price target
• Jefferies: "Hold" position continued with $6.00 price objective

Operational Performance Shows Mixed Signals

Hertz delivered better-than-anticipated results in the second quarter of 2025. The company reported a loss per share of -$0.34, outperforming expectations of -$0.40, while revenue reached $2.18 billion. Following management's commentary on the business outlook, shares surged approximately 8%.

Should investors sell immediately? Or is it worth buying Hertz?

The automotive rental firm achieved net income per vehicle of $251, with gross profit per vehicle climbing to $280. This improvement was driven by accelerated fleet modernization and gains from vehicle disposals. Company leadership now projects gross profits of around $300 per vehicle per quarter for the second half of 2025.

Strategic Initiatives Showing Promise

Hertz continues to execute its comprehensive fleet management strategy centered on optimal acquisition, retention, and disposal timing. Vehicle depreciation expenses decreased by 45% year-over-year, while fleet utilization reached 83%. The partnership with Amazon for online sales of pre-owned vehicles sparked significant investor interest, sending shares up 8.57%.

Despite these strategic advances, fundamental challenges persist. The company's gross profit margin remains thin at 6.52%, and short-term liabilities exceed available cash, reflected in a current ratio of 0.55.

Sector Momentum Provides Support

Recent positive sentiment across the car rental industry has benefited Hertz shares, particularly following competitor Avis Budget Group's stronger-than-expected quarterly earnings. Since the beginning of the year, Hertz stock has climbed an impressive 37.5%, with the twelve-month performance reaching 83.9%. These figures highlight a substantial recovery, though the equity continues to contend with losses accumulated during previous periods.