Hertz Global Holdings, Inc. (HTZ) - Get Report stock fell nearly 10% in morning trading Thursday after Morgan Stanley analyst Adam Jonas cut the car rental company rating to "underweight" from "equal weight."

Valuation remains among Jonas' chief concerns for the Florida-based company, as share prices have surged close to 110% over the last three months. Jonas said he remains fundamentally bearish on the rental car industry.

Jonas raised his price target to $14 from $12 following an increase in pricing and volumes for the second half of 2017 and all of 2018 as a result of Hurricanes Harvey and Irma. Jonas' $14 price target on Hertz implies it could decline 37% from its market open price of $22.55 Thursday.

Hertz stock is up under 1% since the start of the year. Its massive jump in price this summer came after the company's stock dropped nearly 60% in the first half of 2017.

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