CAR - Avis Budget slides after Bank of America turns bearish with valuation played out

Bank of America dropped its rating on Avis Budget Group (NASDAQ:CAR) to Underperform from Neutral on a call tied to valuation and competitive pressure. Analyst John Murphy and team's fundamental view on Avis and the rental car industry remains somewhat constructive with the macro factors that drove over-earnings for CAR in 2021 persisting into 2022, but that dynamic is said to be more than appreciated in the stock. "Additionally, the Rental car industry as an oligopoly, and Avis faces the risk from competitive Hertz's level of discipline as a new public company." BofA assigned a price target of $240 to CAR. Shares of Avis Budget Group (CAR) fell 5.94% premarket on Wednesday to $260.26 vs. the 52-week trading range of $65.87 to $545.11.

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Avis Budget slides after Bank of America turns bearish with valuation played out