CAR - Avis Budget is cut at Barclays on expectation for valuation reset

Barclays downgrades Avis Budget (CAR +0.1%) to an Underweight rating after having the car rental stock set at Equal Weight. The call is tied to valuation after CAR showed a strong rally amid high social media interest. The long-term fundamental view on CAR is positive. "Following Avis’s print last week, data points remain firm, and qualitatively, the likelihood of higher pricing through at least mid-decade is increasing in our view. Additionally, the emergence of a key competitor from bankruptcy and the advent of a new secular growth story seems to be supportive of a re-rating in the rental car space." CAR is up more than 600% YTD.

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Avis Budget is cut at Barclays on expectation for valuation reset