CAR - Avis Budget is viewed cautiously by Morgan Stanley due to Omicron risk

Morgan Stanley is negative on Avis Budget Group (NASDAQ:CAR) as it points to elevated risks for near-term earnings due to the Omicron COVID variant. Analyst Billy Kovanis: "We believe it is a self-fulfilling prophecy in the very short-term whereby headlines unfortunately cause people and businesses to alter their behavior around travel, regardless of the true impact of the virus on health. Overall, we believe there will be some impact to Avis'earnings in 4Q-21 and 1Q-22. However, in the medium tolong-term we remain very bullish on a return of travel, led by significant pent up demand." For the interim, Morgan Stanley keeps an Underweight rating on CAR and price target of $170. Shares of CAR are down 2.08% premarket to $298.80 but are still riding off their meme buzz rally from earlier this year.

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Avis Budget is viewed cautiously by Morgan Stanley due to Omicron risk