UPDATE: J.P. Morgan Resumes Coverage on Avis Budget Group with Overweight Rating, $36 PT on Positive Outlook

In a report published Wednesday, J.P. Morgan analyst Kevin Milota resumed coverage on Avis Budget Group (NASDAQ: CAR) with an Overweight rating, previously Not Rated, and a $36.00 price target.In the report, J.P. Morgan noted, “We are relaunching coverage of CAR with an Overweight rating (previously Not Rated) and year-end 2014 price target of $36. We are positive on CAR, and believe its investment story is one that can be labeled 'in progress.' We believe that CAR, and the industry, is at the early stages of a more meaningful demand and pricing recovery. We commend CAR on the progress it has made so far on the overhaul of its European business, and believe this region is primed for a recovery, when Eurozone fundamentals finally cooperate. In addition, we believe CAR's focus on price attainment, primarily through positive mix shift (i.e., small business accounts, focus on premium and specialty class vehicles), is finally starting to play out, and are hopeful that a stronger GDP environment in 2014 will continue to have a positive effect on pre-tax income, EPS and EBITDA growth.”Avis Budget Group closed on Tuesday at $28.27.