JPMorgan Chase & Co. Issues Pessimistic Forecast for Avis Budget Group (NASDAQ:CAR) Stock Price

Key Points

• JPMorgan cut its Avis Budget Group price target from $105 to $85 and maintained an “underweight” rating, implying 29.43% downside from the stock’s price at the time.
• Avis reported quarterly EPS of $5.15, below the $8.01 consensus estimate. Revenue of $3.44 billion slightly beat expectations but declined 2.4% year over year.
• Analyst sentiment is cautious: MarketBeat lists a “Reduce” consensus rating and a $116.14 average price target, with five Hold ratings and four Sell ratings.

Avis Budget Group (NASDAQ:CAR - Get Free Report) had its price objective reduced by analysts at JPMorgan Chase & Co. from $105.00 to $85.00 in a note issued to investors on Thursday, Benzinga reports. The brokerage currently has an "underweight" rating on the business services provider's stock. JPMorgan Chase & Co.'s price target indicates a potential downside of 29.43% from the stock's current price.

CAR has been the topic of a number of other reports. Weiss Ratings restated a "sell (d-)" rating on shares of Avis Budget Group in a report on Monday, August 17th. Morgan Stanley reduced their price target on shares of Avis Budget Group from $99.00 to $95.00 and set an "equal weight" rating for the company in a report on Friday, September 11th. Wall Street Zen lowered shares of Avis Budget Group from a "hold" rating to a "sell" rating in a report on Saturday, August 1st. Zacks Research cut shares of Avis Budget Group from a "hold" rating to a "strong sell" rating in a research report on Monday, October 19th. Finally, The Goldman Sachs Group boosted their target price on Avis Budget Group from $94.00 to $108.00 and gave the company a "sell" rating in a research report on Thursday. Five analysts have rated the stock with a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat, Avis Budget Group has a consensus rating of "Reduce" and a consensus price target of $116.14.

Avis Budget Group Stock Up 0.5%

Avis Budget Group stock traded up $0.63 during trading hours on Thursday, reaching $120.44. 580,235 shares of the company's stock were exchanged, compared to its average volume of 1,210,335. The firm's 50 day simple moving average is $115.06 and its 200 day simple moving average is $152.96. Avis Budget Group has a twelve month low of $85.96 and a twelve month high of $847.70. The firm has a market capitalization of $4.25 billion, a PE ratio of -5.21 and a beta of 1.95.

Avis Budget Group (NASDAQ:CAR - Get Free Report) last announced its quarterly earnings data on Tuesday, November 3rd. The business services provider reported $5.15 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $8.01 by ($2.86). The firm had revenue of $3.44 billion during the quarter, compared to the consensus estimate of $3.42 billion. During the same quarter last year, the company earned $10.11 earnings per share. Avis Budget Group's revenue for the quarter was down 2.4% compared to the same quarter last year. Analysts anticipate that Avis Budget Group will post 1.08 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Retirement Systems of Alabama boosted its holdings in Avis Budget Group by 1.8% during the third quarter. Retirement Systems of Alabama now owns 17,854 shares of the business services provider's stock worth $1,904,000 after purchasing an additional 318 shares during the last quarter. Fulcrum Asset Management LLP purchased a new position in shares of Avis Budget Group in the 3rd quarter worth approximately $347,000. Oregon Public Employees Retirement Fund grew its holdings in shares of Avis Budget Group by 2.9% in the third quarter. Oregon Public Employees Retirement Fund now owns 3,574 shares of the business services provider's stock valued at $381,000 after acquiring an additional 100 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al increased its position in shares of Avis Budget Group by 4.5% during the third quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 2,300 shares of the business services provider's stock valued at $245,000 after acquiring an additional 100 shares during the last quarter. Finally, Inspire Investing LLC lifted its holdings in Avis Budget Group by 27.7% during the third quarter. Inspire Investing LLC now owns 5,916 shares of the business services provider's stock worth $631,000 after acquiring an additional 1,285 shares during the period. 96.35% of the stock is currently owned by institutional investors and hedge funds.

About Avis Budget Group

Avis Budget Group, Inc is a provider of mobility and vehicle-rental services. Through its Avis and Budget brands, the company offers car and truck rentals to business and leisure customers, serving travelers through airport and neighborhood locations as well as digital booking channels.

The company also operates Zipcar, a car-sharing service that provides members with access to vehicles for short-term use. Its brand portfolio has also included Payless, which serves value-oriented rental customers.

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