Hertz (HTZ) stock sank as much as 8% to a record low before paring losses on Monday as investors digested yet another leadership change at the car rental company.
On Friday Hertz announced CEO Stephen Scherr will step down after holding the position since February 2022. He will be replaced by Gil West, former chief operating officer of Delta Airlines.
“Scherr’s departure suggests HTZ faces greater operational challenges that need a more ‘hands on’ approach to execution,” noted Morgan Stanley analyst Adam Jonas. The firm has an EqualWeight rating on the stock with a $10 price target.
The leadership change comes after a reversal in Hertz’s electric vehicle strategy. In January the rental company said it would sell 20,000 EVs, or about a third of its fleet, in a shift back to gas-powered vehicles.
Hertz has had multiple CEOs since 2014. In 2021 the company emerged from Chapter 11 bankruptcy and went public again on the Nasdaq with symbol HTZ.
In 2021, Hertz outlined plans to electrify its entire fleet and said it would order up to 100,000 Tesla Model 3 sedans.
