Bill Ackman makes big bet on Hertz becoming tariff winner
Bill Ackman’s Pershing Square Capital Management has collected a share of approximately 20 % at Hertz Global Holdings Inc. In a bet on the Rental Car Company plan, and that the customs tariff will enhance the value of its cars.
Akman said in a post on X.
Ackman vibrates that Herz can overcome a bad bet on Tesla Inc. And benefit from a possible rise in the prices of used cars caused by president Donald Trump’s tariff for US car imports. It also depends on the Gil West executive office that manages the company’s large debt burden and withdrawing a continuous shift effort.
The Hurtz shares jumped by 44 % in New York trading on Thursday, stretching a two -day gathering as the shares doubled more than weakness in value.
West told Hurtz employees in the regular Friday note this week that he was modest and encouraged him to support Akkam.
“This support is a testament to our progress, and most importantly, the effort where each one of you is unabated every day,” West wrote in an email message. “We must be proud of the progress we have made, but we also realize that there is still an important work in the future.”
It is widely expected to raise the Trump tax by 25 % on imported cars with thousands of dollars if it remains valid for a long time. This, in turn, may increase the value of used cars-especially the late vehicles that are displayed in the supply-where consumers who find themselves in the new car market turn to the previously owned vehicles.
“Hertz is in a good position in the current tariff environment,” Akman said in the X Post. “HERTZ has a fleet of more than 500,000 cars of approximately $ 12 billion. An increase of 10 % in used car prices will become a $ 1.2 billion profit on its assets – equivalent to nearly half of the company’s current market value.”
Ackman sees the path for a $ 30 per share by 2029. Before this week, Hertz shares were traded at less than $ 5. The access there depends on achieving West goals to reach $ 1500 of revenues per unit, and daily operating expenses per low -term vehicle of $ 30 per unit of about $ 300.
Perchang Mathematics also depends on obtaining the use of the Hertz fleet to 85 %, which is rarely compatible with the company, which was historically closer to 80 %.
Ackman is not the first Wall Street Titan to imagine upside down from investing in Hertz. The billionaire investor also believed that he could spend the car rental company. Instead, Hertz went bankrupt and took $ 1.6 billion.
In the short term, Akman said, “We have low expectations for Q1 results for the first and half.”
The same applies to analysts covering the company. Six valid of equivalent stocks for reservation and recommends four to sell the shares, according to the data collected by Bloomberg.
He also presented a few future to investors and his followers on X. Ackman presented the idea of HERTZ-through 11200 global sites-a fleet of self-driving vehicles for Uber Technologies Inc. He mocked that he will call the Uber Dara Khosrowshahi CEO.
Josesuchi said in a post on X that Hirtz was a “great partner” of his company, referring to cooperation since 2021 to provide advantages to drivers who rent electric cars via Hurtz. Khosrowshahi added that he was “excited to exchange ideas on how to expand our relationship.”
Akman concluded his position with a warning.
“investment is fraught with risks,” wrote. “There are no guarantees for successful results. EMPTOR.”
This story was originally shown on Fortune.com
2025-04-18 20:16:00
