- Herc Holdings (HRI +8.3%) surges after Goldman Sachs upgrades shares to Buy from Sell with a $60 price target, hiked from $37, saying U.S. construction equipment supply likely has peaked and that rental rates should find a bottom in coming quarters.
- Goldman's Jerry Revich thinks Herc's cyclical risk/reward has improved, and he likes the company's operational turnaround, including a move towards higher return product lines.
- Revich also upgraded United Rentals (URI +1.2%) to Buy from Neutral, foreseeing multiple expansion for the construction rental group if manufacturing production cuts play out in the coming quarters as expected.
- HRI's average Sell Side Rating is Outperform.