Morgan Stanley: Hertz's New CEO Hire An 'Important Milestone To Let The Healing Begin'

Hertz Global Holdings, Inc. HTZ announced last week that it has appointed John P. Tague as president and chief executive officer.

In a press release, Hertz stated that "Mr. Tague is a travel and transportation industry veteran who has delivered demonstrable results in revenue generation, operational excellence and corporate transformation."

On Monday, Adam Jonas of Morgan Stanley may have agreed with Hertz's CEO selection and that Tague's hiring represents an "important milestone."

"We have heard mostly positive feedback on Hertz's new CEO, John Tague, particularly with respect to his reputation to ‘break with tradition' on pricing behavior during his senior leadership positions at a variety of airlines," Jonas wrote in a note. The analyst adds that the executive brings a "deep knowledge" of the travel industry, especially dealing with "challenging operational circumstances."

Jonas adds that Tague also has a reputation for sound revenue management and improving pricing in a consolidated industry.

Shares were maintained with an Underweight rating with a $16 price target.