According to a report from Financial Times Hertz is close to spinning off the construction equipment rental business in a deal that values the unit at about $4.5 billion. The company is reportedly looking to spin-off the business to shareholders. Hertz is also looking into a reverse Morris trust, which combines and spin-off and a merger.
The construction equipment rental business accounted for $1.1 billion of Hertz's revenue in the first nine months of 2013.
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TheStreet Ratings team rates HERTZ GLOBAL HOLDINGS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate HERTZ GLOBAL HOLDINGS INC (HTZ) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."