BUY Conviction3/5 Analysis quality65/100 if they can prove their strategy is working and get depreciation costs down to $300 per vehicle per month by the end of 2025
Travis Hoium suggests that Hertz Global (HTZ) could be a buy if the company successfully executes its strategy to reduce depreciation costs. He notes that the stock is down significantly, making the risk-reward profile attractive, and believes the company can return to profitability by lowering vehicle acquisition costs and improving fleet management. The company's ability to meet its depreciation per unit target by the end of 2025 is a key factor.
“not quite a stock that I'm buying yet but if they can prove that this strategy is working and they can get those depreciation costs down closer to $300 on a per month basis per vehicle by the end of 2025 the economics of the business look really good”