JPMorgan Chase & Co. Forecasts Strong Price Appreciation for Herc (NYSE:HRI) Stock

Key Points

• JPMorgan raised Herc’s price target from $165 to $230 and maintained an “overweight” rating, implying roughly 39.5% upside. The broader analyst consensus is “Moderate Buy,” with an average target of $197.29.
• Herc reported quarterly earnings of $3.91 per share, beating estimates of $2.92, while revenue rose 4.6% year over year to $1.36 billion. The company also increased its full-year earnings guidance, supporting the stock’s 5.6% gain to $164.82.
• Despite strong results and substantial institutional ownership of 93.11%, high leverage remains a concern, with a debt-to-equity ratio of 4.22. Investors will also monitor the planned CEO transition to Aaron Birnbaum on January 1, 2027.

Herc (NYSE:HRI - Get Free Report) had its target price lifted by equities research analysts at JPMorgan Chase & Co. from $165.00 to $230.00 in a report issued on Wednesday, Benzinga reports. The firm currently has an "overweight" rating on the transportation company's stock. JPMorgan Chase & Co.'s target price would suggest a potential upside of 39.54% from the company's current price.

Several other brokerages have also recently weighed in on HRI. Robert W. Baird raised their target price on shares of Herc from $220.00 to $240.00 and gave the company an "outperform" rating in a report on Wednesday. Weiss Ratings reiterated a "hold (c)" rating on shares of Herc in a report on Monday. Zacks Research raised shares of Herc from a "hold" rating to a "strong-buy" rating in a research report on Monday, September 14th. Citigroup dropped their price objective on shares of Herc from $175.00 to $150.00 and set a "buy" rating on the stock in a research report on Monday, October 12th. Finally, BNP Paribas Exane raised their price objective on shares of Herc from $165.00 to $176.00 and gave the company a "neutral" rating in a report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $197.29.

Herc Stock Up 5.6%

Shares of HRI stock traded up $8.77 during trading on Wednesday, reaching $164.82. The company's stock had a trading volume of 992,819 shares, compared to its average volume of 618,523. The company has a debt-to-equity ratio of 4.22, a current ratio of 1.10 and a quick ratio of 1.10. The company has a market capitalization of $5.51 billion, a price-to-earnings ratio of 111.77 and a beta of 2.04. The stock's 50-day moving average price is $139.13 and its 200 day moving average price is $139.38. Herc has a 1-year low of $88.45 and a 1-year high of $188.35.

Herc (NYSE:HRI - Get Free Report) last announced its earnings results on Tuesday, October 27th. The transportation company reported $3.91 earnings per share for the quarter, topping the consensus estimate of $2.92 by $0.99. The firm had revenue of $1.36 billion for the quarter, compared to the consensus estimate of $1.35 billion. Herc had a net margin of 1.01% and a return on equity of 10.33%. The firm's revenue for the quarter was up 4.6% on a year-over-year basis. During the same period in the prior year, the firm earned $2.22 EPS. On average, research analysts anticipate that Herc will post 7.30 EPS for the current year.

Institutional Investors Weigh In On Herc

Hedge funds and other institutional investors have recently made changes to their positions in the business. Greenland Capital Management LP purchased a new stake in Herc in the second quarter valued at $1,147,000. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in Herc in the second quarter valued at $2,078,000. Penn Capital Management Company LLC acquired a new position in Herc in the second quarter valued at $21,070,000. Peregrine Capital Management LLC acquired a new position in Herc in the first quarter valued at $6,234,000. Finally, Bank of America Corp DE grew its holdings in shares of Herc by 147.8% during the first quarter. Bank of America Corp DE now owns 235,320 shares of the transportation company's stock worth $23,426,000 after purchasing an additional 140,355 shares during the last quarter. Institutional investors and hedge funds own 93.11% of the company's stock.

Key Stories Impacting Herc

Here are the key news stories impacting Herc this week:

• Positive Sentiment: Strong Q3 earnings beat: Herc reported adjusted earnings of $3.91 per share, well above the $2.92 analyst consensus and up from $2.22 a year earlier. Revenue reached a record $1.36 billion, modestly exceeding estimates, while quarterly revenue increased 4.6% year over year. Herc Holdings Reports Third Quarter 2026 Results and Increases 2026 Full Year Guidance
• Positive Sentiment: Rental demand and acquisition synergies supported results: Equipment rental revenue rose 12% on a larger fleet, and management said scale, customer relationships and project execution helped capture accelerating demand. Investors are also responding favorably to evidence that the H&E Equipment acquisition is generating expected synergies. Why Herc Holdings Rocketed Over 20% Today
• Positive Sentiment: 2026 guidance increased: Herc raised its full-year earnings outlook, reinforcing confidence in operating momentum. Robert W. Baird also lifted its price target from $220 to $240 and maintained an “outperform” rating. Robert W. Baird rating update
• Neutral Sentiment: Upcoming investor presentation: President Aaron Birnbaum and CFO Mark Humphrey will participate in the Baird Global Industrial Conference on November 10, potentially providing additional details on demand, integration and capital allocation. Herc to Participate in the Baird 2026 Global Industrial Conference
• Neutral Sentiment: Leadership transition: Aaron Birnbaum is set to become CEO on January 1, 2027, creating a potential catalyst but also adding execution uncertainty during the integration period. Herc Names Aaron Birnbaum as CEO
• Negative Sentiment: Leverage remains a concern: Herc carries substantial debt following its acquisition activity, with a debt-to-equity ratio above 4. Some coverage also noted that full-year sales guidance fell short of expectations, which could limit further upside if growth slows. Herc Holdings Stock Jumps on Q3 Earnings Beat as Leverage Lingers

Herc Company Profile

Herc Holdings Inc, operating primarily through the Herc Rentals brand, is an equipment rental supplier serving construction, industrial, commercial and government customers. The company provides access to equipment and related services intended to help customers complete projects without purchasing and maintaining their own fleets.

Its rental fleet includes aerial work platforms, earthmoving equipment, material-handling equipment, trucks and trailers, power generation and climate-control equipment, pumps, and general tools.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.