Barclays Cuts Price Target For Avis Budget & Hertz Global - Read Why - Avis Budget Gr (NASDAQ:CAR), Hertz Global Holdings (NASDAQ:HTZ)

Barclays analyst Brian Johnson lowered the price target for Avis Budget Group Inc CAR to $158 (1.7% upside) from $223 while maintaining the Equal Weight rating on the shares.
The analyst reduced the price target on Hertz Global Holdings Inc HTZ to $21 (28% upside) from $23 while maintaining the Over Weight rating on the shares.
Johnson points out that the supply/demand imbalance for Avis and Hertz is being exacerbated by Enterprise, which may be adding to the rental car supply crunch by assigning the fleet to its pre-negotiated corporate contracts at the expense of the leisure segment.
The analyst assesses that 20% of the U.S. leisure market is at stake for Enterprise to reclaim.
Johnson sees Q4 and 2023 at risk of negative earnings revisions for Avis and Hertz, reflecting waning consumers, a recovery in new car production, and the chance of Enterprise taking back airport share.
Price Action: CAR shares are trading higher by 3.07% at $155.54 and HTZ lower by 1.23% at $16.41 on the last check Tuesday.