Adam Jonas, an analyst from Morgan Stanley, maintained the Buy rating on Avis Budget (CAR – Research Report). The associated price target remains the same with $120.00.
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Adam Jonas has given his Buy rating due to a combination of factors influencing Avis Budget’s strategic position and future growth prospects. Despite a significant fourth-quarter financial miss, affected by increased fleet costs and a substantial non-cash impairment charge, Jonas sees potential in the company’s forward-looking strategy. Avis Budget’s decision to accelerate fleet rotation, despite the impairment, aims to position the company for sustainable growth beyond 2025.
Furthermore, the company has provided guidance for an adjusted EBITDA of no less than $1 billion for fiscal year 2025, which surpasses the Morgan Stanley estimate of $940 million. The transition to a new CEO, Brian Choi, and the company’s focus on addressing industry trends such as electrification, robotics, and AI, are seen as positive steps towards transforming its business model. These strategic initiatives highlight Avis Budget’s commitment to adapting to industry changes, which contributes to Jonas’s positive outlook on the stock.
In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $140.00 price target.