CAR - Avis Budget rallies after landing bull rating from Morgan Stanley

2023-06-20 07:40:31 ET

Morgan Stanley turned positive on Avis Budget ( NASDAQ: CAR ) on Tuesday with an upgrade to an Overweight rating.

Analyst Adam Jonas and team are bullish on a travel comeback in general and see potential for Avis Budget ( CAR ) to generate structurally higher margins due to its strong track record of fleet risk management.

Avis Budget ( CAR ) is noted to have a history of being able to extract higher revenue in comparison to rival Hertz Global ( HTZ ), as well as generate lower costs and subsequently higher margins from their operations.

Morgan Stanley assigned a new base case price target of $230 on Avis Budget ( CAR ), which is 8.0X the firm's FY24 EBITDA estimate. The MS bull case price target on CAR is $350.

Shares of Avis Budget Group ( CAR ) moved up 3.65% in premarket action on Tuesday to $204.29 vs. the 52-week trading range of $131.83 to $251.62.

More on Avis Budget Group:

• Avis Budget Group: Hold, The Future Is Blurred
• Growth metrics on Avis Budget Group
• Relative strength index and moving averages
• Seeking Alpha's Quant Rating for Avis Budget Group

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