Baird ups Herc Holdings target, names ‘bullish Fresh Pick’

Baird raised the firm’s price target on Herc Holdings (HRI) to $267 from $165 and keeps an Outperform rating on the shares. The firm also named the stock a “tactical bullish Fresh Pick.” With Q3 earnings out of the way, “a multiple expansion driven catch-up trade” to United Rentals (URI) s setting up into year-end for Herc, the analyst tells investors in a research note. The firm says closing the valuation gap by half could drive Herc shares 40% higher. Pro-cyclical sentiment surrounding the election could add an additional catalyst for the stock, adds Baird. While the company’s non-residential fundamentals are likely continue eroding into the first half of 2025, “that is a bridge that gets crossed next year,” the firm contends.