UPDATE: BofA Securities Downgrades Avis Budget Group (CAR) to Neutral

(Updated - October 28, 2021 7:03 AM EDT)

BofA Securities analyst John Murphy downgraded Avis Budget Group (NASDAQ: CAR) from Buy to Neutral with a price target of $200.00 (from $125.00).

The analyst comments "Following a nearly 40% return in just the last month and a 345% performance in the stock YTD, we are downgrading CAR from Buy to Neutral based entirely on valuation. We still remain constructive on both macro dynamics for the Rental car companies and on CAR’s competitive positioning, but see risk-reward on the stock as less compelling. Our revised PO of $200 is based on 12x (prior 10x) EV/EBITDA on a blended average of our unchanged 2021-2022 estimates (prior on 2022E), as we see increasing risk that 2022 earnings may be revised up to elevated 2021 levels, along with possible constructive news flow coming from peer HTZZ as it looks to re-list as a public company."

For an analyst ratings summary and ratings history on Avis Budget Group click here. For more ratings news on Avis Budget Group click here.

Shares of Avis Budget Group closed at $165.99 yesterday.

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