BancBoston Robertson Stephens Comments on AN's Price Increase
9 September 1999
BancBoston Robertson Stephens Comments on AN's Price Increase
SAN FRANCISCO--Sept. 8, 1999--BancBoston Robertson Stephens senior automotive analyst Jordan Hymowitz today commented on National Car Rental's price increase.National Car Rental announced this morning that it will raise rates across the board effective mid-October.
"With this rate increase, we believe that National's new management team is moving away from its old strategy of attempting to maximize market share, while undercutting prices," said Hymowitz.
"In our view, National's previous strategy, forced competitors to match the lower prices, rather than allowing market share to diminish," said Hymowitz. "We believe this downward spiral only leads to an unchanged market share pie, with industry pricing that is much lower."
"We believe the major beneficiary of National's strategy shift will be Hertz's stock, as the company will now begin moving prices upward, rather than attempting to maintain market share," said Hymowitz.
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