Barclays Reinstates Avis Budget Group (CAR) at Equalweight; Overall Positive, But Visibility Limited

Barclays reinstates coverage on Avis Budget Group (NASDAQ: CAR) with a Equalweight. PT $14.00.

Barclays analyst says, "We are reinstating our rating on Avis Budget EW to reflect the risk and lack of visibility into its newly acquired Avis Europe business. Despite an increase in vehicle depreciation of about $140mn as gains on sales post-quake fade, CAR should continue to grow earnings as it digests the $160mn of corporate EBITDA from Avis Europe and in light of continued improvement in travel demand. This should enable the company to generate $700+mn of corporate EBITDA in 2012, and justifies our $14 PT (6.0x 2012E EBITDA of $718mn)."

"Avis Europe acquisition could boost international by more than the $160mn we have modeled, but visibility is limited."

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 $10.55 yesterday.

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