Pershing Square Capital Management, L.P. on Hertz
Thesis
Hertz is in the early stages of a turnaround with asymmetric upside. The company has completed its fleet refresh and achieved best-in-class vehicle utilization. We believe profitability will increase significantly, with management targeting $1 billion of EBITDA. The share price can increase meaningfully from current levels if management successfully executes its turnaround plan.
“HTZ is a leading vehicle rental provider in the early stages of a turnaround with asymmetric upside. Profitability to significantly increase... Management targeting $1bn of EBITDA in the coming years, with continued growth afterwards as operations improve. Share price can increase meaningfully from current levels if management successfully executes turnaround plan”