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Avis Budget Gains After JPM Upgrades to Neutral -Breaking

by Mike Robinson

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© Reuters.

Sam Boughedda

Investing.com — Avis Budget Group Inc (NASDAQ:) shares gained 4% Wednesday after JPMorgan released a note stating it was upgrading the stock to neutral from underweight.

Ryan Brinkman analyst, however, lowered the price target to $225.00 from $205.00.

Brinkman told investors that the stock price has declined significantly since his double downgrade at the beginning of November — the company’s shares fell from around $298 to Monday’s lows of $162.50. However, Brinkman believes there is a solid 21% upside to the shares. He however points out that this upside is lower than Hertz’s potential upside, which he likes because of its lower valuation. 

Brinkman said that the target multiple was set higher than historical norms, partly reflecting structural increases in margin due greater perceived pricing power within the industry and further improvement of financial condition. THe analyst thinks the Omicron variation’s effect may have been overhyped.

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