CAR - Avis Budget falls after stock downgraded to sell on valuation concerns

Avis Budget Group (NASDAQ:CAR) fell 7.1% in premarket trading after more than doubling yesterday after two Wall Street firms downgraded the stock to sell. CAR was downgraded to underweight from overweight by JPMorgan analyst Ryan Brinkman, who cited the company's valuation after jumping on a short squeeze yesterday. Brinkman raised his price target on CAR to $225 from $100. "We believe current valuation after a large run-up in the shares likely triggered by a “short squeeze” now gives more than ample credit for these tailwinds, underpinning our underweight rating," Brinkman wrote. Deutsche Bank also cut its rating on CAR to sell from hold, writing that valuation "compels us" to downgrade. Analyst Chris Woronka raised CAR's PT to $210 from $119, though $210 still implies 40% downside from current price. "We simply cannot justify, using any reasonable traditional valuation metric, the $10.5 billion of incremental value generated by the more than doubling

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Avis Budget falls after stock downgraded to sell on valuation concerns