Shares of Hertz Global on Thursday declined after Oppenheimer cut its target price on the company’s stock as it lowers its third-quarter and full-year outlook.
At 12:56 pm E.T., shares were down 8.4%, at $13.82. The stock has dropped 21% in the past three months.
Oppenheimer expects total revenue per transaction day to increase 1% to 2% quarter over quarter compared from prior views of mid-single digit growth, which would equate to a $100 million Hertz shortfall, analysts said.
The investment bank now expects Hertz to post third-quarter revenue of $2.71 billion from $2.76 billion previously, and earnings before interest, taxes, depreciation and amortization of $376 million, from $496 million.
It also predicts lower full-year revenue of $9.38 billion from $9.43 billion, and an Ebitda of $1.20 billion from $1.32 billion.
“Overall, demand and utilizations remain strong. However, pricing increases have moderated more than expected, owing to less disciplined competitors and a greater mix of lower-priced offerings,” analysts said.