After being given a downgrade from Barclays, Hertz Global Holdings (NYSE:$HTZ) stock plummeted on July 31.
Dan Levy, an analyst at Barclays, has officially lowered the firm’s rating for Hertz Global Holdings from “Equalweight” to “Underweight.” In addition, Levy set a price target of $9 for the stock; this is significant as it is well below its closing price of $17.34 on Friday.
What caused the downgrade? It is thought that the primary reason behind Barclays decision to downgrade is because Levy forecasts Hertz Global Holdings to perform poorly during its Q2 of 2017. If this were to happen, the stock could have a hard time recovering from the current downward trend.
Furthermore, Barclays lowered its earnings per share estimates for Hertz Global Holdings fiscal year 2017 and 2018. With these changes, Barclays now expects Hertz Global Holdings to report losses per share of $2.56 in fiscal 2017 and $2.62 in fiscal 2018. To put that into perspective, the firm’s previous estimates for HTZ had losses per share of 79 cents this year and 3 cents in 2018, according to StreetInsider.com.
Keep in mind Hertz Global Holdings will be reporting its Q2 earnings on Tuesday, August 8, 2017. The earnings will be released at 4:00 p.m. ET and a webcast will follow at 5:00 p.m.
According to Wall Street, losses per share should come in at around 62 cents in 2017 and EPS of 82 cents in 2018. For Q2 of 2017, analysts are forecasting that Hertz Global Holdings will report losses per share of 12 cents on revenue of $2.22 billion.
As of noon Monday (Eastern Time), the company’s stock was down 15%. The stock is down 32% so far this year.
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