Bank of America Securities analyst John Babcock has maintained their bullish stance on CAR stock, giving a Buy rating on April 23.
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John Babcock’s rating is based on Avis Budget’s strong performance in the first quarter, where the company exceeded expectations in terms of adjusted EBITDA and fleet costs. The company demonstrated effective execution, with lower fleet costs than anticipated, which contributed to better-than-expected results. Additionally, Avis Budget managed to achieve higher utilization rates despite operating with a smaller fleet, indicating efficient operations.
Furthermore, Babcock notes positive demand trends and advanced reservations, suggesting a favorable outlook for the company. Although there are uncertainties in the market, the potential for earnings recovery in 2025 and 2026, along with attractive valuation, supports the Buy rating. Avis Budget’s efforts in productivity and efficiency, along with the possibility of gaining market share from competitors, further reinforce the positive outlook for the stock.
Babcock covers the Consumer Cyclical sector, focusing on stocks such as Visteon, Luminar Technologies, and Mobileye Global, Inc. Class A. According to TipRanks, Babcock has an average return of 5.4% and a 46.27% success rate on recommended stocks.
In another report released on April 23, J.P. Morgan also maintained a Buy rating on the stock with a $145.00 price target.