Avis Budget (CAR – Research Report), the Industrials sector company, was revisited by a Wall Street analyst on February 13. Analyst Stephanie Moore from Jefferies reiterated a Buy rating on the stock and has a $185.00 price target.
Stephanie Moore has given her Buy rating due to a combination of factors surrounding the Avis Budget Group. Despite encountering headwinds such as increased per unit fleet costs and an anticipated rise in depreciation and vehicle interest expenses, Moore believes these challenges are already factored into the company’s projections, and she foresees Avis Budget achieving higher earnings and margins compared to the pre-COVID era. She remains optimistic based on the strong demand for rental services and Avis Budget’s proactive measures in managing operational expenses, which could lead to further financial benefits not yet accounted for in her analysis.
Moore acknowledges that while Avis Budget’s fourth quarter results were below expectations and the stock experienced a significant drop, she sees potential in the company’s strategy to balance supply and demand, thus maintaining robust revenue per day (RPD) and utilization rates. The solid demand, indicated by airline industry signals and TSA volume increases, coupled with Avis Budget’s operational efficiency initiatives and cost-control measures, underpin her positive outlook. Additionally, Moore points out that, despite the cost pressures, the competitive dynamics within the rental industry remain favorable, suggesting a sustainable advantage for Avis Budget in terms of long-term earnings potential.
Moore covers the Industrials sector, focusing on stocks such as Saia, Waste Connections, and Waste Management. According to TipRanks, Moore has an average return of 24.0% and a 66.67% success rate on recommended stocks.
In another report released yesterday, J.P. Morgan also maintained a Buy rating on the stock with a $240.00 price target.
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Avis Budget (CAR) Company Description:
Avis Budget Group, Inc. engages in the provision of vehicle sharing and rental services. It operates through the Americas and International segments. The Americas segment licenses the company’s brands to third parties for vehicle rentals and and ancillary products and services in North America, South America, Central America, and the Caribbean. The International segment leases out vehicles in Europe, the Middle East, Africa, Asia, and Australasia. The company was founded by Warren E. Avis in 1946 and is headquartered in Parsippany, NJ.
Read More on CAR:
- Avis Budget price target lowered to $240 from $280 at JPMorgan
- Avis Budget price target lowered to $118 from $164 at Goldman Sachs
- Avis Budget reports Q4 EPS $7.10, consensus $4.15
- Avis Budget Group Reports Fourth Quarter and Full Year Results
- Avis Budget options imply 10.5% move in share price post-earnings
