Could Hertz (HTZ) and Amazon’s Used Car Pilot Reveal a Deeper Digital Retail Ambition?

• Hertz announced a partnership with Amazon to pilot the sale of used vehicles through Amazon Autos in select cities, with the possibility of expanding nationwide.
• This collaboration moves Hertz Car Sales further into digital retail, leveraging Amazon’s platform to broaden reach despite limited disclosure on expected financial impact.
• To assess how this new online sales initiative through Amazon might shift Hertz's investment narrative, let's examine the implications for its digital and retail strategies.

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Hertz Global Holdings Investment Narrative Recap

To be a shareholder in Hertz Global Holdings, you need to believe the company can successfully execute its digital transformation, modernizing car sales and rentals with new platforms, while navigating ongoing competitive and financial headwinds. The recent Amazon partnership is promising but does not materially address Hertz’s most immediate challenges: persistent losses and liquidity concerns remain the biggest risks, while near-term catalysts hinge on profitable vehicle sales and improved operational efficiency.

Of the recent announcements, the nationwide rollout of Hertz Rent2Buy® aligns most closely with the Amazon initiative, advancing the company’s shift toward customer-friendly, digital-first sales channels. This expansion supports Hertz’s broader digital retail strategy, aiming to optimize its large and young fleet by making it easier for customers to test and purchase vehicles, complementing the reach gained through Amazon’s online pilot.

But amid these digital moves, investors should also be aware of ongoing concerns about profitability and the ability to meaningfully reduce losses in the near term...

Read the full narrative on Hertz Global Holdings (it's free!)

Hertz Global Holdings' narrative projects $8.8 billion revenue and $424.8 million earnings by 2028. This requires a 0.8% annual revenue decline and a $2.9 billion earnings increase from current earnings of -$2.5 billion.

Uncover how Hertz Global Holdings' forecasts yield a $4.01 fair value, a 41% downside to its current price.

Exploring Other Perspectives

Six members of the Simply Wall St Community estimate Hertz’s fair value anywhere from US$4 to over US$11,000 per share. While this range highlights vastly differing views, keep in mind that Hertz’s biggest risk cited by analysts remains its weak profitability and debt load, which could influence how you interpret these valuations.

Explore 6 other fair value estimates on Hertz Global Holdings - why the stock might be a potential multi-bagger!

Build Your Own Hertz Global Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Hertz Global Holdings research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Hertz Global Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Hertz Global Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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