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
CAR,
+1.12%

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
HTZ,
+0.28%

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
SPX,
-0.06%

in the identical interval.

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