CAR - Avis Budget Group: Bank of America steps to the sidelines saying valuation is fair

Avis Budget Group (CAR +4.3%) is downgraded to Neutral from Buy at Bank of America based purely on valuation. The stock has risen 40% in the last month and 345% YTD. "We still remain constructive on both macro dynamics for the Rental car companies and on CAR’s competitive positioning, but see risk-reward on the stock as less compelling," write analysts led by Aileen Smith. Macro elements including limited incoming vehicle supply and tight average fleet are expected to drive earnings above consensus. Bank of America raises its price target on CAR to $200 from $125, compared to the average of $110. Smith says the most notable risk for Avis Budget Group is competitor Hertz (OTCPK:HTZZ +7.2%), especially after Hertz's order for 100k Tesla's.

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Avis Budget Group: Bank of America steps to the sidelines saying valuation is fair