Market Overview

Why Hertz Shares Are Surging Higher Wednesday

Share:
Why Hertz Shares Are Surging Higher Wednesday

Shares of care rental company Hertz Global Holdings Inc (NYSE: HTZ), which filed for Chapter 11 bankruptcy in late May, were advancing strongly Wednesday.

What Happened: Speculation concerning a sale of Hertz gained ground after Jefferies analyst Hamzah Mazari said in a note that the embattled company could be sought afterby peer Avis Budget Group Inc. (NASDAQ: CAR) or auto retailers such as CarMax, Inc (NYSE: KMX) and AutoNation, Inc. (NYSE: AN).

Why it Matters: CarMax and AutoNation might be interested in the Hertz fleet of 150,000 used cars, with the potential proceeds likely to be used to pay off Hertz debtors, the analyst said.

After Hertz stock plummeted to a low of 40 cents immediately after its bankruptcy filing, it unsuccessfully tried to fundraise by selling shares.

A liquidation could also help the company trim its fleet to align supply with the muted demand outlook in the wake of the COVID-19 pandemic, according to Jefferies.

At last check, Hertz shares were jumping 55.2% to $1.94. while Avis Budget was slipping 9.62% to $22.27. CarMax shares were down 2.85% at $89.60 and AutoNation was down 6.41% at $36.04. 

Related Links:

Why Bankrupt Hertz Is A 'Short Squeeze Poster Child' Ahead Of Bizarre Equity Offering

PreMarket Prep Stock Of The Day: Hertz

Latest Ratings for HTZ

DateFirmActionFromTo
Apr 2020BarclaysDowngradesEqual-WeightUnderweight
Apr 2020JP MorganDowngradesNeutralUnderweight
Apr 2020Morgan StanleyMaintainsUnderweight

View More Analyst Ratings for HTZ
View the Latest Analyst Ratings

 

Related Articles (HTZ)

View Comments and Join the Discussion!

Posted-In: Hamzah Mazari JefferiesAnalyst Color News Penny Stocks Analyst Ratings Movers Trading Ideas Best of Benzinga

Latest Ratings

StockFirmActionPT
INTCJP MorganMaintains70.0
STMCanaccord GenuityMaintains47.0
ELDeutsche BankMaintains248.0
UAADeutsche BankMaintains13.0
INTCDeutsche BankMaintains55.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com