- Avis Budget Group (NASDAQ: CAR) shares received a price target of $156 from Morgan Stanley. These are the details.
Avis Budget Group (NASDAQ: CAR) shares received a price target of $156 from Morgan Stanley. And Morgan Stanley analyst Adam Jonas gave the company an “underweight” rating.
Jonas noted that while the car rental industry has shown some structural improvement, the market is in the final stages of a post-COVID economic boom.
Despite Avis Budget and its counterpart Hertz’s record first-quarter results, Jonas lowered both companies’ price targets to reflect market rates, recession risks and secular headwinds.
“With the combined 1Q22 Americas fleet (HTZ + CAR) less than 6% of 1Q19 levels, we see negative mean reversion risk for RPD and fleet depreciation as anti-inflationary actions the Fed take hold and new/used vehicle inventories increase,” Jonas wrote. in a research note. “We are updating our financial models to reflect the latest results from CAR and HTZ. Despite record first quarter results, we are revising our price targets lower to reflect market rates, recession risks and secular headwinds.
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