Avis Budget price target lowered to $118 from $164 at Goldman Sachs

Goldman Sachs analyst Lizzie Dove lowered the firm’s price target on Avis Budget to $118 from $164 and keeps a Sell rating on the shares following the Q4 report. The earnings call provided two key negative updates: a higher than expected outlook for 2024 vehicle depreciation of $325 per vehicle, as the company over fleeted and used car prices have continued to come down, and year-over-year declines in pricing in 2024 that are steeper than consensus had expected, the analyst tells investors in a research note. The firm continues to believe the market is overestimating Avis Budget’s pricing power as the supply/demand environment normalizes.