Morgan Stanley Downgrades Avis Budget, Sees 23% Downside

• Morgan Stanley analyst Billy Kovanis downgraded Avis Budget Group Inc. (NASDAQ: CAR) to Underweight from Equal Weight and raised the price target to $110 (implying a downside of 23%) from $85.

• Kovanis says the company faces "peak" cyclical earnings and has an unfavorable risk/reward at the current valuation. The recent "multiple re-rate" is "premature."

• The analyst sees better risk-adjusted opportunities for automobility and/or travel exposure in other names. His normalized 2023 earnings forecast for Avis of $1.2 billion is "lower than what the market appears to be implying" at $1.5 billion.

• Also read: In Case CAR Has Gone Too Far: Avis Was A Top Name Of Ours Last Month. Since Then, It's Up 60%. How To Stay Long While Locking In Gains.

• Price Action: CAR shares are trading lower by 4.60% at $142.96 on Thursday.

Latest Ratings for CAR

Oct 2021	Morgan Stanley	Downgrades	Equal-Weight	Underweight
Sep 2021	B of A Securities	Upgrades	Neutral	Buy
Aug 2021	JP Morgan	Upgrades	Neutral	Overweight

View More Analyst Ratings for CAR
View the Latest Analyst Ratings

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