Rental Car Companies Back Away From Hard-To-Resell Electric Vehicles
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 15 2024
0mins
Source: Business Insider
- Rental Car Companies and EVs: Rental car companies are less enthusiastic about electric vehicles (EVs) due to challenges in reselling them at decent prices, leading to a decrease in purchases of EVs for rental fleets.
- Challenges Faced by Rental Car Companies: Rental car companies struggle to rent EVs profitably due to issues like lack of charging stations, increased insurance premiums, difficulties in obtaining spare parts, and accidents caused by underestimating EV acceleration.
Analyst Views on HTZ
Wall Street analysts forecast HTZ stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for HTZ is 4.83 USD with a low forecast of 3.00 USD and a high forecast of 6.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
0 Buy
2 Hold
1 Sell
Moderate Sell
Current: 5.880
Low
3.00
Averages
4.83
High
6.00
Current: 5.880
Low
3.00
Averages
4.83
High
6.00
About HTZ
Hertz Global Holdings, Inc. is a car rental and mobility solutions provider. The Company's subsidiaries and licensees operate the Hertz, Dollar, Thrifty and Firefly vehicle rental brands with more than 11,000 rental locations in 160 countries around the globe, as well as the Hertz Car Sales brand, which offers a range of used cars for sale online and at locations across the United States, and the Hertz 24/7 car sharing business in Europe. The Company's segments include Americas RAC and International RAC. Its Americas RAC segment includes rental of vehicles, as well as sales of vehicles and value-added services, in the United States, Canada, Latin America and the Caribbean. The Company's International RAC segment includes rental of vehicles, as well as sales of vehicles and value-added services, in locations other than the United States, Canada, Latin America and the Caribbean. The Company has franchisees and partners that operate rental locations under its brands.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
