UPDATE: Avis Budget Group (CAR) PT Raised to $73 as Morgan Stanley Sees an Almost Perfect Environment for Rental Companies

Morgan Stanley analyst Billy Kovanis raised the price target on Avis Budget Group (NASDAQ: CAR) to $73.00 (from $67.00) while maintaining a Equalweight rating on the belief we are entering an almost "perfect environment" for a rental player to be operating in. After updating estimates for the ~$130mm Q1 beat,Adj EBITDA is expected to rise to $742mm, up more than 60% from the $460mm forecasted prior) in 2021.

The analyst stated "We see positive data points continuing to support the strong momentum in this all-time favorable environment (record high used car pricing, record industry low on fleets, upcoming travel demand strength and robust pricing) - however we also believe a lot of these good factors have been priced into the stock. We find it difficult to believe that all of these coincident positive factors can be sustained into the medium to long-term and as a result we find it difficult to recommend to new investors to deploy fresh capital with Avis trading at all time highs."

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