NEW YORK (TheStreet) -- Shares of rental car company Hertz Global Holdings (HTZ) were up 1.12% to $28.79 in Friday morning trading, but Barclays isn't sure that there's a case to be an incremental buyer for the stock for now after its massive earnings miss.
The bank cut its price target on the stock to $31 from $52 in a research note circulated to investors Friday morning, pointing to its expectations of more downward earnings revisions ahead.
Hertz trimmed its full-year earnings guidance to a 51 cent-to-88 cent per share range from $2.75-to-$3.50 when it released third quarter results after the market closed Monday. The stock lost as much as half of its market value the following day before it pared back some of its losses. It has traded steadily since. Despite the precipitous drop, billionaire investor Carl Icahn said he purchased 15 million shares of Hertz, which more than doubled his previous investment and gives him roughly a 35% stake in the company.
The company attributed the darker forecast to depreciation on its vehicles and slower-than-expected cost savings, but Barclays sees a different narrative. Analyst Brian Johnson wrote that the revision was "partially a function of deterioration in demand (international and U.S. corporate), overly aggressive prior guidance and mis-execution (biting off more than it could chew).
Johnson believes that earnings growth will remain sluggish.
"While there may still be compelling long-term potential for the stock to the extent Hertz is able to make progress around its earnings targets, investors are unlikely to be buyers anytime soon," he added.