UPDATE: Morgan Stanley Reiterates on Avis Budget Group on Positive Pricing Outlook, Fleet Cost Concerns

In a report published Tuesday, Morgan Stanley analyst Adam Jonas reiterated an Underweight rating on Avis Budget Group CAR, and raised the price target from $24.00 to $28.00. In the report, Morgan Stanley noted, “While 4Q pricing was fairly soft, YTD pricing of 2% and a positive pricing outlook for 2014 helped alleviate investor concerns on pricing. We continue to see downside on lower residuals, which we believe will decline more than expected as off-lease volumes recover and OEM price discipline wavers.” Avis Budget Group closed on Monday at $46.84.