NEW YORK (TheStreet) -- Hertz Global (HTZ) rose Thursday after billionaire activist investor Carl Icahn disclosed he had taken an 8.5% stake in the car rental company and may try for board representation.
Icahn said in a regulatory filing he felt the shares were undervalued. He has plans to discuss his issues with current management, along with Hertz's accounting issues, operational problems and underperformance compared to peer companies.
The investor owns 38.8 million shares of Hertz.
Must Read: Warren Buffett's 25 Favorite Stocks
The stock was up 1.12% to $30.67 at 10:34 a.m. More than 10.4 million shares, compared to the average volume of 8,647,290.
Separately, 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 multiple strengths, 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 revenue growth, compelling growth in net income, good cash flow from operations, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows: