UPDATE: J.P. Morgan Resumes Coverage on Hertz Global Holdings with Overweight Rating, $29 PT on Positive Outlook

In a report published Wednesday, J.P. Morgan analyst Kevin Milota resumed coverage on

with an Overweight rating, previously Not Rated, and a $29.00 price target. In the report, J.P. Morgan noted, “We are relaunching coverage of HTZ with an Overweight rating (previously Not Rated) and year-end 2014 price-target of $29. We are positive on the HTZ story and its prospects for 2014, when we believe industry demand and pricing turn in a more incremental fashion. In addition to the substantial synergies at hand with the company's leisure-centric Dollar Thrifty brand, we think 2014 will benefit from higher utilization and fleet benefits from having its three brands on one common counter and fleet management system. That fact that 60% of its assets will be common to all three brands should have a meaningful impact on fleet utilization in our estimate period, and enable the company to run a much tighter fleet in comparison to years past – which should only benefit net fleet costs. Further, we are bullish on the prospects for HTZ's equipment rental business and forecast double-digit revenue growth through 2015. Lastly, free cash flow growth should enable HTZ to delever through 2015 and hits ‘investment grade'–like net leverage metrics by early 2015.” Hertz Global Holdings closed on Tuesday at $21.80.