Yahoo Finance Avis Budget Gains After JPM Upgrades to Neutral
By Sam Boughedda
Investing.com — Avis Budget Group Inc (NASDAQ:CAR) shares gained 4% Wednesday after JPMorgan released a note stating it was upgrading the stock to neutral from underweight.
However, analyst Ryan Brinkman reduced the price target to $205.00 from $225.00.
Brinkman told investors that the stock price has declined significantly since his double downgrade at the beginning of November — the company's shares fell from around $298 to Monday's lows of $162.50. Regardless, the analyst now sees a "solid" 21% upside in the shares, although explains that it is less than the potential upside of Hertz, which he prefers for its lower valuation.
"Our target multiple is set above the historical average, reflecting partly structural increase in margin on greater perceived industry pricing power and further bolstering of financial condition," said Brinkman. The analyst believes the impact of the Omicron variant may be overblown.
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