Hertz Global (HTZ) Jumps 11.8% on Higher Price Target

Hertz Global Holdings, Inc. (NASDAQ:HTZ) is one of the stocks that are flying past expectations.

Hertz Global rallied for a second day on Thursday, jumping 11.78 percent to close at $7.97 apiece as investor sentiment was buoyed by an investment firm’s price target upgrade for the company.

In a market note, Deutsche Bank raised its price target for Hertz Global Holdings, Inc. (NASDAQ:HTZ) to $5.25 from $4 previously, while maintaining a “hold” recommendation. The price, however, was 34 percent lower than its latest closing price.

Deutsche Bank attributed its revision to the increasing short interest in its stock and optimism from a billionaire and hedge fund manager’s increased stake in the company.

In April this year, billionaire and hedge fund manager Bill Ackman raised his ownership in Hertz Global Holdings, Inc. (NASDAQ:HTZ) through a combination of direct share purchase and total return swaps through his company, Pershing Square.

A fleet of cars parked at a car rental company’s headquarters, symbolizing the company’s commitment to servicing its customers.

According to Ackman, Hertz Global Holdings, Inc. (NASDAQ:HTZ), once troubled by operational challenges linked to its acquisition of Tesla vehicles, is now positioned for improvement due to several strategic changes to enhance profit margins by rotating its fleet, boosting unit revenues, and cutting operating costs.

The company has also begun transitioning from high-cost vehicles in a bid to reduce depreciation expenses significantly.

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Disclosure: None. This article is originally published at Insider Monkey.