Hertz downgraded to Underperform at BofA as higher fleet costs continue

As previously reported, BofA downgraded Hertz to Underperform from Neutral with a price target of $3, down from $9, telling investors that the company’s Q1 results “well below” BofA and Street estimates failed to allay concerns about higher fleet costs that are unlikely to meaningfully subside in the near-term. Liquidity is also an increasing concern and while the firm sees the company having multiple levers to manage its liquidity, it expects the company is “likely to end up with more leverage,” the analyst added.