In a report released yesterday, Federico Merendi from Bank of America Securities maintained a Sell rating on Avis Budget, with a price target of $113.00.
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Federico Merendi has given his Sell rating due to a combination of factors impacting Avis Budget’s financial performance. Despite Avis exceeding expectations in the third quarter of 2025, particularly in the international segment, the overall outlook remains concerning. The company’s performance in the Americas lagged, with lower revenue per day and reduced vehicle utilization, which were affected by softer leisure pricing and a significant number of vehicles under recall.
Moreover, Avis’s guidance suggests that its adjusted EBITDA for the fiscal year is expected to be at the lower end of the projected range. This cautious outlook, combined with the current stock price being significantly higher than the price objective set by Bank of America Securities, supports the Sell rating. The disparity between the current market price and the price objective indicates potential downside risk, prompting a conservative stance on the stock.
According to TipRanks, Merendi is a 3-star analyst with an average return of 2.8% and a 60.00% success rate. Merendi covers the Consumer Cyclical sector, focusing on stocks such as Ford Motor, AutoNation, and PHINIA Inc..