- Morgan Stanley analyst Billy Kovanis downgraded Avis Budget Group Inc. CAR to Underweight from Equal Weight and raised the price target to $110 (implying a downside of 23%) from $85.
- Kovanis says the company faces "peak" cyclical earnings and has an unfavorable risk/reward at the current valuation. The recent "multiple re-rate" is "premature."
- The analyst sees better risk-adjusted opportunities for automobility and/or travel exposure in other names. His normalized 2023 earnings forecast for Avis of $1.2 billion is "lower than what the market appears to be implying" at $1.5 billion.
- Also read: In Case CAR Has Gone Too Far: Avis Was A Top Name Of Ours Last Month. Since Then, It's Up 60%. How To Stay Long While Locking In Gains.
- Price Action: CAR shares are trading lower by 4.60% at $142.96 on Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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