CAR - Avis earnings growth likely to run out of gas analysts advise
Despite a huge earnings beat that sent shares soaring after-hours on Monday, analysts remain skeptical of the sustainability of growth for Avis Budget Group (NASDAQ:CAR). Shortly after shattering top and bottom line set by Wall Street on Monday evening, shares soared by double digits. Management touted executional excellence and low fleet cost for the positive results, while upping the firm’s share repurchase authorization in a sign of continued bullishness. However, shortly after Tuesday’s open, shares had completely given up their gain. Promoting this about-face, Wall Street analysts have been quick to advise clients against overestimating the quarterly print. For example, Bank of America analyst Aileen Smith termed the results “over-earnings” driven by macro factors that are “more than appreciated in the stock” already. She added that the rental industry remains an oligopoly after the resurgence of Herts (HTZ). Smith retained an “Underperform” rating on shares due to valuation concerns and
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Avis earnings growth likely to run out of gas, analysts advise