JPMorgan Downgrades Avis Budget Group Amid Stock Plummet
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 19 2024
0mins
Should l Buy CAR?
Source: NASDAQ.COM
Avis Budget Group's stock has plummeted nearly 60% from its April highs, hitting a 5-day low.
JPMorgan has downgraded Avis Budget Group's rating from 'Neutral' to 'Underweight' with a price target of $165, indicating a potential downside of 62.8% from Wednesday's closing price. This reflects a cautious stance on the company's valuation, especially after the stock surged from approximately $86 in February to over $847 in April, marking an 884% increase before the recent decline. The market sentiment has shifted, with retail sentiment on Stocktwits moving from 'extremely bullish' to 'bearish', indicating heightened uncertainty about the stock's future price movements.
The significant drop in Avis's stock price raises concerns about its valuation and future performance, especially in light of the recent downgrades by analysts.
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Analyst Views on CAR
Wall Street analysts forecast CAR stock price to fall
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 154.060
Low
142.00
Averages
142.00
High
142.00
Current: 154.060
Low
142.00
Averages
142.00
High
142.00
About CAR
Avis Budget Group, Inc. is a provider of mobility solutions through its three brands, Avis, Budget and Zipcar, as well as several other brands. Its brands offer a range of options, from car and truck rental to car sharing. Its segments include Americas and International. The Americas segment consists primarily of vehicle rental operations in North America, South America, Central America and the Caribbean and operates car-sharing operations in certain of these markets. The International segment consists of vehicle rental operations in Europe, the Middle East, Africa, Asia and Australasia, and operates car-sharing operations in certain of these markets. The Avis brand provides vehicle rental and other mobility solutions at price points generally above non-branded and value-branded vehicle rental companies and serves the premium commercial and leisure segments of the travel industry. Its other brands include Payless, Apex, AmicoBlu, Maggiore, Morini Rent, FranceCars, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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See More
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