HTZ
🚗 Bill Ackman sees Hertz as a prime beneficiary of potential tariffs, expecting rising used car prices to significantly boost the value of Hertz’s large vehicle fleet (a 10% rise could add $1.2B, half its market cap).
📈 Ackman’s valuation model targets $30 per share by 2029, suggesting a potential 4x return from current levels, based on improved fleet utilization (post-Tesla issues) and operational enhancements.
🤝 A strategic partnership with Uber allows Hertz to better utilize idle vehicles, generating extra revenue and leveraging its extensive network, an advantage smaller competitors lack.
@Artedeinvertir:
“Bill Ackman’s new investment, which he is quite optimistic about but very interesting, is Hertz. According to Ackman, they had been accumulating shares for quite some time since last year, in the $3 and $4 range. This position became public because he had to disclose being a significant shareholder to the SEC, and the stock has risen immensely, almost 100%, from $4 to $8 today. This rally was also fueled by a message explaining the investment thesis of why they, or why Bill Ackman, was investing in the company, which he believes is undervalued. It’s an investment that surprised everyone because until recently, there was talk that Hertz might go bankrupt. That’s why it has had such a violent reaction now, because it’s the support of an investor with a very good track record over the years, and he thinks the future could be different from the past. He thinks the current tariff environment could benefit Hertz. Hertz has a fleet of 500,000 vehicles valued at $12 billion. A 10% increase in used car prices would equate to a gain for Hertz of $1.2 billion, roughly equivalent to half the company’s market capitalization. Why does Ackman estimate a rise in used car prices? If there are tariffs, imported cars will be more expensive, so people will buy more used cars because they are more competitive. Thus, rental companies, instead of selling a used car for €20,000, might sell it for €22,000. Furthermore, the company finished buying most of its cars before potential price hikes due to tariffs. He values the company based on expectations for 2029, projecting $2 billion in EBITDA by increasing fleet utilization from 80% to 85% after resolving issues with the previous Tesla fleet depreciation. Valuing it at a conservative 7.5x multiple, considering its scale, network, and a partnership with Uber to utilize idle cars, Ackman arrives at a $30 valuation target by 2029.”
Watch the exact part of the video where @Artedeinvertir talks about Hertz here:
Watch the video on YouTube
Read more articles analyzing Hertz (HTZ) at the following link. HTZ stock.
