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Is HTZ a good stock to buy? We came across a bullish thesis on Hertz Global Holdings, Inc. on Valueinvestorsclub.com by Nuance. In this article, we will summarize the bulls’ thesis on HTZ. Hertz Global Holdings, Inc.'s share was trading at $6.14 as of May 1st. HTZ’s trailing and forward P/E were 23.71 and 11.78 respectively according to Yahoo Finance.

Hertz (HTZ) is a highly levered rental car operator undergoing a multi-year turnaround following its 2021 bankruptcy emergence, with ongoing efforts to stabilize operations and resolve a still-complex capital structure.

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Despite near-term earnings volatility and negative LTM EBITDA, the investment case is increasingly driven by capital structure dislocation, particularly in the 2030 convertible notes, which have traded into the high-70s and appear meaningfully cheap versus both unsecured bonds and equity on a risk-adjusted basis.

The broader structure remains bifurcated between ~$11bn+ of non-recourse ABS financing secured by fleet assets and ~$5–6bn of corporate-level debt, yet the company retains ~$2.2bn of liquidity supported by revolver capacity and recent financing actions, providing runway through the expected FY26–FY27 recovery period.

Operationally Hertz is seeing improving fleet utilization, normalization of depreciation per unit, and supportive used vehicle pricing following prior EV-related volatility and fleet missteps Management targets a return toward ~$1bn EBITDA over time driven by fleet optimization, pricing discipline and mobility growth with FY26–FY27 expected to mark early stages of earnings recovery.

Additional upside is supported by activist involvement, a highly shorted equity base, and potential technical re-rating while credit markets continue to price distress in secured CDS levels reinforcing the disconnect between unsecured bonds and implied risk Within this framework the 2030 converts offer convex exposure to recovery while maintaining structural seniority protection.

Overall Hertz represents a time-and-optionality driven restructuring story where improving fundamentals, asset-backed downside protection, and capital structure mispricing combine to create an attractive risk-reward skew, particularly through the convertible notes.

Previously, we covered a bullish thesis on Hertz Global Holdings, Inc. (HTZ) by Bill Ackman in May 2025, which highlighted industry oligopoly, fleet optimization, margin expansion, and asset value upside from fleet. HTZ's stock price has depreciated by 12.90% since our coverage. Nuance shares a similar view but emphasizes capital structure dislocation and undervalued 2030 converts versus unsecured bonds.

Hertz Global Holdings, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held HTZ at the end of the fourth quarter which was 44 in the previous quarter. While we acknowledge the risk and potential of HTZ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HTZ and that has 10,000% upside potential, check out our report about this cheapest AI stock.

Disclosure: None.