Avis’s stock gets ratings upgrade as demand for travel continues

Avis Budget Group Inc.’s stock obtained a ratings upgrade from analysts at Morgan Stanley, who stated they moved to a “relatively more constructive view” of the rental-car business amid ongoing heated demand for travel.

The analysts, led by Adam Jonas, raised their ranking on Avis’s

stock to the equal of purchase from the equal of impartial and set a worth goal of $230, up from $200. The new worth goal represents an upside of about 5% over Thursday costs for Avis shares.

See additionally: Airlines are bracing for a busy summer season travel season — right here’s what to anticipate

Avis “has a history of being able to not only extract higher revenues, but also lower costs and subsequently higher margins from their operations vs [Hertz Global Holdings Inc.],” the analysts stated.

They stored their ranking on Hertz

shares on the equal of maintain.

The analysts stated that their airline workforce continues to be bullish on travel for the second half of the 12 months and that rental-car firms are “the proverbial ‘tail of the dog’ of the travel industry.” Broader demand performs a key function within the business’s demand curves, the analysts stated.

Shares of Avis have gained 35% to date this 12 months, whereas Hertz’s shares have risen 15%. That compares with good points of about 14% for the S&P 500

in the identical interval.

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