CAR - Avis Budget is a new best idea short at Hedgeye

Hedgeye fired off a new best idea short call on Avis Budget (NASDAQ:CAR). Analyst Jay Van Sciver noted that before the stimulus-driven surge in meme stocks, the car rental stock was widely viewed as a "capital intensive low multiple business facing intense competitive pressures and substitution from ridesharing." Sciver and team warn that CAR's profits will trend back toward pre-pandemic norms with the Fed tightening into a slowing growth economy, which is said to not be reflected in the current earnings estimates. Hedgeye sees shares of CAR underperforming by more than 50% as the current macro environment and disinflation accompanies receding pandemic pressures into the early part of  2023. Avis Budget Group (CAR) rose 1.10% in premarket trading on Monday. See all the valuation metrics on CAR.

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Avis Budget is a new best idea short at Hedgeye