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JPMorgan still prefers Avis after Hertz Q1 report

JPMorgan says Hertz (HTZ) shares declined 17% yesterday after its Q1 results featured a bigger EBITDA loss on account of softer sales trends coupled with higher than anticipated vehicle interest and expenses. Commentary on the earnings call echoed industry dynamics similar to peer Avis Budget (CAR) regarding leisure channel demand outperforming commercial customer demand, and ongoing uncertainty around 2026 model year purchases, the analyst tells investors in a research note. JPMorgan keeps an Underweight rating on Hertz, continuing to prefer Avis.

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