Barclays Upgrades Avis Budget Group (CAR) to Equalweight

Barclays analyst Brian Johnson upgraded Avis Budget Group (NASDAQ: CAR) from Underweight to Equalweight with a price target of $245.00 (from $164.00).

The analyst commented, "Upgrade CAR to EW- still see valuation gap not fully justified, but technical factors/pace of
buybacks to hard to fight. CAR’s announcement for an increased share repurchase authorization on Mar 16, demystified the nearly 100% run in the stock from late Feb to mid-March, as it implied ~$900mn worth of share repurchases in 1Q’22. Moreover, CAR has a relatively small float percentage given the ~1/3 ownership by SRS, and high short interest, creating a volatile trading backdrop and increasingly evident “squeeze risk,” especially as CAR continues to repurchase shares. With technical factors difficult to fight and the sector serving as an ‘inflation proof’ asset class, we upgrade the shares to EW (price target to $245 from $164 )."

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 $285.35 yesterday.

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