Goldman Sachs Remains Buyer Of HTZ

Today, Hertz Global Holdings, Inc. (NYSE: HTZ) announced that it expects full-year 2010 adjusted pre-tax income and adjusted diluted EPS to “significantly beat” the high end of its guidance, Goldman Sachs reports.“Hertz expects 2010 Corporate EBITDA will ‘beat' the high end of its guidance range while 2010 revenues will be ‘in line' with guidance,” Goldman Sachs writes.“We believe this announcement is a positive for shares, as it reinforces our view that Hertz's cost containment programs (i.e., its lean/six sigma program, alternative marketing strategies) are driving significant margin improvement.”“We are buyers of Hertz as a compelling relative value opportunity on rebounding corporate travel volumes, with more room to go on its cost-cutting efforts, plus new growth avenues via its push into the off-airport market and expansion of its Advantage brand,” Goldman Sachs continues. “We also believe HERC equipment rental provides a second leg to the story in 2011/2012 when construction spend is expected to rebound. Our estimates and price target are unchanged.”Hertz Global Holdings closed Monday at $14.40.