Avis Budget Group, Inc. (NASDAQ:CAR) Stock Has Average Price Target of $125.71

Key Points

• Analysts are bearish on Avis Budget Group: nine firms give the stock an average “Reduce” rating, including four sells and five holds, with an average 12-month price target of $125.71.
• Several analysts recently cut or downgraded their views, including Morgan Stanley lowering its target to $95 and Zacks Research moving the stock to “strong sell.”
• Institutional investors own 96.35% of the company’s shares, while Avis Budget’s latest quarterly results missed expectations, reporting $0.98 in EPS versus the $2.05 consensus and revenue of $3 billion.

Shares of Avis Budget Group, Inc. (NASDAQ:CAR - Get Free Report) have earned an average recommendation of "Reduce" from the nine research firms that are covering the company, Marketbeat.com reports. Four analysts have rated the stock with a sell recommendation and five have given a hold recommendation to the company. The average 1-year target price among brokerages that have updated their coverage on the stock in the last year is $125.71.

Several analysts have recently commented on CAR shares. The Goldman Sachs Group increased their price objective on Avis Budget Group from $85.00 to $95.00 and gave the company a "sell" rating in a report on Friday, July 24th. Morgan Stanley lowered their price objective on Avis Budget Group from $99.00 to $95.00 and set an "equal weight" rating for the company in a research report on Friday, September 11th. Wall Street Zen downgraded Avis Budget Group from a "hold" rating to a "sell" rating in a research note on Saturday, August 1st. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Avis Budget Group in a research report on Monday, August 17th. Finally, Zacks Research lowered Avis Budget Group from a "hold" rating to a "strong sell" rating in a research report on Monday, October 19th.

Institutional Investors Weigh In On Avis Budget Group

A number of large investors have recently modified their holdings of the business. Pentwater Capital Management LP purchased a new position in shares of Avis Budget Group in the 2nd quarter valued at approximately $371,541,000. Hsbc Holdings PLC acquired a new stake in Avis Budget Group in the 2nd quarter worth approximately $247,773,000. BlackRock Inc. acquired a new stake in Avis Budget Group in the 2nd quarter worth approximately $245,413,000. Cibc World Market Inc. purchased a new stake in Avis Budget Group during the 2nd quarter worth approximately $73,915,000. Finally, Bank of Nova Scotia purchased a new stake in Avis Budget Group during the 2nd quarter worth approximately $46,701,000. Hedge funds and other institutional investors own 96.35% of the company's stock.

Avis Budget Group Stock Up 0.5%

NASDAQ:CAR opened at $101.86 on Tuesday. The stock has a market capitalization of $3.60 billion, a price-to-earnings ratio of -5.61 and a beta of 2.12. Avis Budget Group has a 52 week low of $85.96 and a 52 week high of $847.70. The firm has a 50 day moving average of $119.90 and a 200 day moving average of $153.58.

Avis Budget Group (NASDAQ:CAR - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The business services provider reported $0.98 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.05 by ($1.07). The business had revenue of $3 billion for the quarter, compared to analyst estimates of $3.10 billion. The company's revenue was down 1.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.10 earnings per share. As a group, analysts expect that Avis Budget Group will post 1.08 EPS for the current year.

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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