JPMorgan analyst Ryan Brinkman downgraded Hertz to Underweight from Neutral without a price target. The firm reduced estimates to account for softer travel trends and possible faster churn of vehicle fleet. As Hertz’s financial leverage is high, the company may face litigation costs associated with its prior bankruptcy that were not previously considered in JPMorgan’s valuation analysis, the analyst tells investors in a research note. The firm sees a longer path to normalized earnings beyond the 2026 timeframe for the company.
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