Is HTZ a good stock to buy? We came across a bullish thesis on Hertz Global Holdings, Inc. on Valueinvestorsclub.com by Nuance. In this article, we will summarize the bulls’ thesis on HTZ. Hertz Global Holdings, Inc.’s share was trading at $5.75 as of April 28th. HTZ’s trailing and forward P/E were 23.71 and 11.78 respectively according to Yahoo Finance.
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Hertz Global Holdings (HTZ) is a highly levered rental car company emerging from post-bankruptcy restructuring and undergoing an operational turnaround, presenting a compelling capital structure mispricing opportunity through its recently issued 2030 convertible notes. The 2030 convertible notes trade at distressed levels despite sitting pari passu with higher yield unsecured bonds, highlighting a clear capital structure dislocation driven by forced selling and limited credit investor participation.
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Post-bankruptcy emergence, Hertz has stabilized operations under sponsor-backed ownership, resolving legacy liabilities and exiting costly EV fleet missteps that previously pressured depreciation and residual values. Activist investor participation and elevated short interest further support upside optionality as retail-driven flows amplify volatility in a tightly held equity base. The company’s unit economics are supported by improving used vehicle prices, which strengthen residual values and enhance fleet profitability within its ABS financing structure.
Liquidity remains sufficient near term with over $2bn available enabling multi-year runway despite negative EBITDA currently, reinforcing time optionality. Overall, the 2030 converts offer asymmetric upside tied to EBITDA recovery and capital structure rerating, while downside is partially protected by asset-backed fleet collateral and extended liquidity runway, making Hertz an attractive risk-reward setup.
Relative value signals across the capital structure further support this view as secured CDS spreads imply elevated default risk while unsecured 2029 notes trade rich versus their risk profile and pari passu positioning, suggesting long 2030 convert exposure paired with unsecured hedges captures mispricing and optionality efficiently. This setup benefits from continued turnaround execution stable used car markets supporting re-rating.
Previously, we covered a bullish thesis on Hertz Global Holdings, Inc. (HTZ) by Bill Ackman in May 2025, which highlighted industry structure improvement, fleet optimization and earnings recovery potential. HTZ’s stock price has depreciated by approximately 18.43% since our coverage. Nuance shares a similar view but emphasizes on capital structure mispricing in the 2030 convertible notes and relative value across unsecured bonds rather than operational turnaround drivers.
Hertz Global Holdings, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held HTZ at the end of the fourth quarter which was 44 in the previous quarter. While we acknowledge the risk and potential of HTZ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HTZ and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.