J.P. Morgan analyst Ryan Brinkman has maintained their neutral stance on CAR stock, giving a Hold rating on October 22.
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Ryan Brinkman has given his Hold rating due to a combination of factors impacting Avis Budget’s performance. Despite the company reporting better-than-expected third-quarter results, driven by higher volumes that offset lower pricing, there are ongoing challenges. The elevated level of industry-wide safety recalls is significantly affecting fleet utilization and depreciation costs, which are expected to persist into the fourth quarter.
Additionally, Avis Budget’s management has revised its full-year EBITDA outlook to the lower end of its previously stated range, indicating potential challenges ahead. The softer pricing environment, influenced by competitive pressures from peers like Hertz, adds to the uncertainty. While the company’s strong transaction days performance is a positive sign, the unresolved recall issues and pricing trends create a cautious outlook, justifying the Hold rating.
In another report released on October 22, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $149.00 price target.