Goldman downgrades Avis Budget to Sell on ‘stretched’ valuation

Goldman Sachs downgraded Avis Budget (CAR) to Sell from Neutral with a price target of $105, up from $87. The firm views the stock’s valuation as “stretched” following doubling over the past three months. Goldman says that with no big inflection in revenue per day during Q2 as well as higher cost investments and supply issues, it continues to estimate $1.1B of normalized EBITDA for Avis. It sees a lack of catalysts for the company’s EBITDA inflecting higher and downside risk to consensus estimates.