Following yesterday’s trading, Hertz Global Holdings, Inc. (NYSE:HTZ) announced via a regulatory filing with the SEC that its 2014 results would be “well below” its prior guidance citing failures to meet demand due to the automotive industry’s massive recalls and the cost of its accounting review.
Hertz: Downgrades from The Street
While investors immediately hammered the stock following the announcement it took brokerages a bit longer to downgrade the stock. J.P. Morgan Securities cut its rating from “overweight” to “neutral” with Kevin Milota writing, “The filing contained a bundle of bad news that we believe will be the point of capitulation for many of the frustrated bulls who have been extremely patient with Hertz until this point.” The brokerage also lowered its target price from $32 to $25.
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Deutsche Bank also downgraded the stock from “buy” to “hold” with analyst Chris Woronka writing in a note to investors, “We think catalysts for the stock to regain momentum are extremely limited in the near term.”
Wells Fargo didn’t change its rating of the stock but did feel the need to express its disappointment. “What’s frustrating to us is (Hertz) is failing to capitalize on the favorable rental car industry dynamics,” Wells Fargo Securities analyst Richard Kwas wrote in a note. “The heat i