UPDATE: Deutsche Bank Upgrades Avis Budget Group (CAR) to Hold

Deutsche Bank analyst Chris Woronka upgraded Avis Budget Group (NASDAQ: CAR) from Sell to Hold with a price target of $210.00.

The analyst comments "Since our downgrade of CAR post-market on November 2, its 2023E EV/EBITDA multiple has contracted by nearly seven turns, to 9.4x. That's due entirely to a 45.4% decline in shares of CAR (the S&P 500 gained 1.5% during that time frame), as none of our forecasts have changed. Recall, as we noted at the time, while we remained constructive on rental car industry fundamentals in the near term, we viewed certain trading dynamics as having pushed the stock to unreasonable valuation levels while also having meaningfully lowered the probability of further open market share repurchases at or near that price level. However, based on Wednesday's closing price, we view risk/reward as being considerably more balanced than it was on November 2. In the absence of compelling reasons to reduce either our target multiple or estimates, quite simply we believe the most proper course of action is to change our rating from Sell to Hold, and that is what we have done."

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 $194.90 yesterday.

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