Benzinga | Jan 13, 2022 11:48AM EST

Oppenheimer Sees 27% Upside In Hertz Global

* Oppenheimer analyst Ian Zaffino initiated Hertz Global Holdings Inc (NASDAQ:HTZ) with an Outperform rating and a price target of $31, implying an upside of 27%.

* Zaffino says, with a "meaningfully improved cost structure, an under-levered balance sheet, and newfound competitive discipline," Hertz is an "interesting post-bankruptcy equity."

* The analyst says the company has the potential to roughly double its pre-COVID EBITDA margins, even as auto production and the operating environment normalize.

* The analyst further believes Hertz management has been "very forward-looking" with the recently signed agreements with Tesla Inc (NASDAQ:TSLA), Carvana Co (NYSE:CVNA), and Uber Technologies Inc (NYSE:UBER). In addition, the company has a "shareholder-friendly" $2 billion buyback program in place.

* Zaffino believes the $31 target can be achieved.

* Price Action: HTZ shares are trading higher by 0.82% at $24.63 during the premarket session on Thursday.