JP Morgan cuts Herc Holdings PT on deferred rate-cut expectations

Herc Holdings

10/07/2024 12:49

** J.P. Morgan cuts industrial equipment rental company Herc
Holdings'  HRI.N  PT to $150 from $155
    ** Brokerage now expects rate cuts by the Fed to commence in
November vs prior expectation of June
    ** "We remain below consensus for FY24 for HRI, because we
believe the deferral of rate-cuts by the Fed is likely to weigh
on contractors’ pace of new project activity" - JPM
    ** Fed Chair Jerome Powell on Tuesday suggested the case for
interest rate cuts becoming stronger, saying U.S. "no longer an
overheated economy" with job market cooling from pandemic-era
    ** Baird also cuts HRI's PT to $155 from $168; sees decline
in non-residential construction from late-2024 into 2025
    ** Survey commentary points to market participants sensing
tougher environment ahead - Baird
    ** Five brokerages rate the stock "buy" or higher, three
"hold" and one "sell"; their median PT is $178 - LSEG data
    ** Stock had fallen 16% YTD

 (Reporting by Aatreyee Dasgupta)
 ((Aatreyee.Dasgupta@thomsonreuters.com))