Hertz shares are likely going to $0, Morgan Stanley says - Business Insider

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Hertz shares are likely going to $0, Morgan Stanley says - Business Insider
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Hertz shares are likely going to $0, Morgan Stanley says

shares will likely fall to $0, according to Morgan Stanley, leaving the car-rental company's shareholders with nothing.

Morgan Stanley on Monday lowered its base case for shares of Hertz to $0 from $2 after the bankrupt company's plan"We are now more concerned that there is a potential risk of a NYSE de-listing, or potential liquidity shortfall where the company may exhaust available cash to run the business by the end of 2020, potentially leaving the equity with little or no residual claim," said Morgan Stanley analyst Adam Jonas in the Monday note.

after the company declared bankruptcy at the end of May, sending the price skyrocketing. Hoping to capitalize off of the surge, Hertz announced plans to sell as much as $500 million in additional shares and even noted in a regulatory filing that the stock "could ultimately be worthless."

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