MKM Partners Thinks Avis Budget Group Inc. Stock Overreacted
Avis Budget Group Inc. (NASDAQ: CAR) stock overreacted to full year guidance on September 30, according to a report from MKM Partners.
Analyst Christopher Agnew noted that the stock is 15 percent off its highs, but reiterated his Buy rating and $80 price target.
Agnew mentioned four factors behind his rating and the overreaction:
- Europe caused much of the disappointment.
Fleet costs are “only a couple of dollar above the high-end of previous guidance” and is reasonable given the recent record vehicle recalls.
Pricing is encouraging going into 2015
The market failed to understand the benefit of recent “bolt-on acquisitions” which tend to be “highly accretive.”
Avis Budget Group, Inc. traded at $51.52 midday on Wednesday.
Latest Ratings for CAR
|Oct 2016||Goldman Sachs||Initiates Coverage On||Neutral|
|Aug 2016||Macquarie||Initiates Coverage on||Outperform|
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