What 4 Analyst Ratings Have To Say About Herc Hldgs

Herc Hldgs HRI has been analyzed by 4 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $223.5, a high estimate of $250.00, and a low estimate of $200.00. Observing a 27.17% increase, the current average has risen from the previous average price target of $175.75.

Diving into Analyst Ratings: An In-Depth Exploration

A clear picture of Herc Hldgs's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Herc Hldgs. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Herc Hldgs compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Herc Hldgs's stock. This comparison reveals trends in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Herc Hldgs's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Herc Hldgs analyst ratings.

Unveiling the Story Behind Herc Hldgs

Herc Holdings is an equipment rental company that was spun out of Hertz Global in 2016. It is currently the third-largest equipment rental company (4% market share) in North America, after United Rentals and Sunbelt Rentals, with a fleet size of $6.4 billion. It serves commercial and residential construction customers, the environmental sector, industrial entities, and entertainment production companies. During much of its 50-year-plus history, the company has rented equipment such as aerial lifts to its customers for intermittent use. More recently, it has broadened its catalog to include a host of specialty items. Separately, Herc Holdings' strategy now incorporates long-term rentals to industrial customers where Herc maintains its own staff at the customer site.

Herc Hldgs: A Financial Overview

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: Herc Hldgs's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 5.74%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Herc Hldgs's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 8.25%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Herc Hldgs's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 5.24%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.95%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Herc Hldgs's debt-to-equity ratio is notably higher than the industry average. With a ratio of 3.53, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Understanding the Relevance of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.