Is Bill Ackman’s Bullish Spotlight on Hertz (HTZ) Reframing Its High-Risk Turnaround Narrative?

• Earlier this week, prominent investor Bill Ackman highlighted a bullish analysis of Hertz Global Holdings on social media, drawing fresh attention to the car rental group’s turnaround story despite its ongoing financial strains.
• A particularly interesting aspect of this episode is how a single high-profile endorsement reshaped investor focus on Hertz’s long-term prospects, even as conventional metrics still flag elevated risk.
• Next, we’ll examine how Ackman’s public endorsement intersects with Hertz’s existing challenges around debt, modernization, and shifting mobility trends.

Find companies with promising cash flow potential yet trading below their fair value.

Hertz Global Holdings Investment Narrative Recap

To own Hertz today, you need to believe its turnaround from heavy losses and negative equity to sustainable profitability can continue, supported by operational improvements and modernization. Ackman’s endorsement has sharpened attention on that narrative but does not materially change the near term catalyst of restoring earnings quality or the key risk of financial fragility and volatile sentiment.

The latest Q3 2025 update is especially relevant here, with Hertz reporting US$2,478 million in sales and swinging from a large prior year loss to a quarterly profit. That progress, alongside a sharply volatile share price and year to date gains, is now being reinterpreted through the lens of a high profile vote of confidence, which may amplify how investors react to any future earnings surprises.

Yet behind the renewed optimism, the company’s negative shareholders’ equity and history of large impairments remain issues investors should be aware of...

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 implies a 0.8% yearly revenue decline and an earnings increase of about $2.9 billion from -$2.5 billion today.

Uncover how Hertz Global Holdings' forecasts yield a $5.02 fair value, a 6% downside to its current price.

Exploring Other Perspectives

Six fair value estimates from the Simply Wall St Community span an extreme range from about US$0.00 to over US$11,000 per share, underscoring how differently people view Hertz’s prospects. When you set that against the company’s ongoing losses and negative equity, it underlines why examining several independent views on Hertz’s financial resilience and turnaround potential really matters.

Explore 6 other fair value estimates on Hertz Global Holdings - why the stock might be worth less than half the current price!

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.

Interested In Other Possibilities?

Opportunities like this don't last. These are today's most promising picks. Check them out now:

• We've found 10 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
• The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.
• AI is about to change healthcare. These 29 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com