Market Overview

UPDATE: Morgan Stanley Resumes Avis Budget at Underweight on Increased Rental Car Fleet Costs

Related CAR
Avis Budget Downgraded, Still Best Rental Car Play Available
Biggest Risk To The Bear Thesis On Hertz? Carl Icahn
Tracking Larry Robbins' Glenview Capital Management Portfolio - Q4 2016 Update (Seeking Alpha)

In a report published by Morgan Stanley, analyst Adam Jonas resumed coverage with an Underweight rating and $25 price target on Avis Budget (NASDAQ: CAR).

Morgan Stanley reported that, “We think used prices fall more than consensus expects. We expect rental car fleet costs will move upward from historic lows due to a confluence of factors hitting the market at the same time: (1) 16m US SAAR in 2013 and 17m units by 2015 will drive a greater supply of trade-ins; (2) higher sub-prime approvals add pricing risk to new while taking the bid out of the used market; (3) a weaker Yen adds pressure to D3 market share and price discipline; and (4) US off-lease volume rises 28% throughout 2013 and 70% by the end of 2015.”

Avis Budget closed at $28.03 on Monday.

Latest Ratings for CAR

Feb 2017Credit SuisseDowngradesOutperformNeutral
Oct 2016Goldman SachsInitiates Coverage OnNeutral
Sep 2016BarclaysMaintainsEqual-Weight

View More Analyst Ratings for CAR
View the Latest Analyst Ratings

Posted-In: Morgan StanleyAnalyst Color Initiation Analyst Ratings


Related Articles (CAR)

View Comments and Join the Discussion!