Citigroup Lowers Herc (NYSE:HRI) Price Target to $165.00

Key Points

• Citigroup cut its price target on Herc from $185 to $165 while keeping a "buy" rating, with the new target implying roughly 45.6% upside from the stock's prior close.
• Herc shares traded at $113.33 on Monday, well below the analyst consensus price target of $175.43 and under the 50‑day moving average of $156.54, highlighting a gap between market price and analyst valuations.
• Herc beat EPS estimates ($2.07 vs. $1.87) but missed revenue ($1.21B vs. $1.25B) for the quarter; the company also has a high debt‑to‑equity ratio (4.17) and roughly 93% institutional ownership.

Herc (NYSE:HRI - Get Free Report) had its price objective dropped by analysts at Citigroup from $185.00 to $165.00 in a note issued to investors on Monday,Benzinga reports. The firm presently has a "buy" rating on the transportation company's stock. Citigroup's target price points to a potential upside of 45.59% from the stock's previous close.

A number of other brokerages also recently issued reports on HRI. Robert W. Baird decreased their price objective on Herc from $200.00 to $198.00 and set an "outperform" rating on the stock in a research report on Wednesday, February 18th. JPMorgan Chase & Co. boosted their target price on Herc from $150.00 to $165.00 and gave the company a "neutral" rating in a research report on Wednesday, January 14th. KeyCorp decreased their price target on Herc from $200.00 to $190.00 and set an "overweight" rating on the stock in a report on Wednesday, February 18th. Weiss Ratings restated a "sell (d+)" rating on shares of Herc in a research report on Thursday, January 22nd. Finally, Wells Fargo & Company lifted their price objective on shares of Herc from $170.00 to $189.00 and gave the stock an "overweight" rating in a research note on Friday, January 23rd. Six equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $175.43.

Herc Price Performance

HRI traded down $6.80 during trading on Monday, hitting $113.33. 265,960 shares of the company traded hands, compared to its average volume of 602,655. The company has a current ratio of 1.31, a quick ratio of 1.31 and a debt-to-equity ratio of 4.17. The company has a market cap of $3.78 billion, a PE ratio of -629.61, a P/E/G ratio of 16.20 and a beta of 1.73. The stock's 50-day simple moving average is $156.54 and its two-hundred day simple moving average is $141.83. Herc has a 1 year low of $96.18 and a 1 year high of $188.35.

Herc (NYSE:HRI - Get Free Report) last announced its quarterly earnings results on Tuesday, February 17th. The transportation company reported $2.07 EPS for the quarter, topping the consensus estimate of $1.87 by $0.20. The business had revenue of $1.21 billion for the quarter, compared to analysts' expectations of $1.25 billion. Herc had a net margin of 0.02% and a return on equity of 13.21%. The business's quarterly revenue was up 27.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned $3.58 EPS. As a group, sell-side analysts anticipate that Herc will post 12.84 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Herc

A number of institutional investors and hedge funds have recently modified their holdings of the business. AQR Capital Management LLC raised its stake in shares of Herc by 176.9% during the first quarter. AQR Capital Management LLC now owns 25,782 shares of the transportation company's stock valued at $3,462,000 after acquiring an additional 16,470 shares in the last quarter. Goldman Sachs Group Inc. grew its stake in Herc by 25.2% in the first quarter. Goldman Sachs Group Inc. now owns 263,180 shares of the transportation company's stock worth $35,337,000 after purchasing an additional 53,054 shares in the last quarter. Bank of New York Mellon Corp increased its holdings in Herc by 9.5% during the 2nd quarter. Bank of New York Mellon Corp now owns 164,521 shares of the transportation company's stock worth $21,666,000 after purchasing an additional 14,297 shares during the period. Connor Clark & Lunn Investment Management Ltd. increased its holdings in Herc by 244.8% during the 2nd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 174,425 shares of the transportation company's stock worth $22,970,000 after purchasing an additional 123,839 shares during the period. Finally, Campbell & CO Investment Adviser LLC bought a new stake in Herc during the 2nd quarter valued at $650,000. 93.11% of the stock is owned by institutional investors.

About Herc

Herc Holdings Inc NYSE: HRI operates as a leading equipment rental provider in North America, offering a wide range of machinery and support services to construction, industrial, government and event sectors. The company's fleet includes aerial work platforms, earthmoving equipment, material handling solutions, power generation units and specialty tools, enabling clients to scale their operations without the capital expense of ownership. In addition to basic machinery rentals, Herc provides value-added services such as equipment maintenance, on-site safety training and project consulting to help customers optimize productivity and maintain compliance with industry standards.

Founded as part of Hertz Global Holdings, the equipment rental business was spun off as an independent public company in early 2016.

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