Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Benzinga
Benzinga
Business
Akanksha Bakshi

Barclays Cuts Price Target For Avis Budget & Hertz Global - Read Why

  • Barclays analyst Brian Johnson lowered the price target for Avis Budget Group Inc (NASDAQ:CAR) to $158 (1.7% upside) from $223 while maintaining the Equal Weight rating on the shares.
  • The analyst reduced the price target on Hertz Global Holdings Inc (NASDAQ:HTZ) to $21 (28% upside) from $23 while maintaining the Over Weight rating on the shares.
  • Johnson points out that the supply/demand imbalance for Avis and Hertz is being exacerbated by Enterprise, which may be adding to the rental car supply crunch by assigning the fleet to its pre-negotiated corporate contracts at the expense of the leisure segment.
  • The analyst assesses that 20% of the U.S. leisure market is at stake for Enterprise to reclaim.
  • Johnson sees Q4 and 2023 at risk of negative earnings revisions for Avis and Hertz, reflecting waning consumers, a recovery in new car production, and the chance of Enterprise taking back airport share.
  • Price Action: CAR shares are trading higher by 3.07% at $155.54 and HTZ lower by 1.23% at $16.41 on the last check Tuesday.
Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.