Avis Budget price target lowered to $140 from $170 at BofA

BofA lowered the firm’s price target on Avis Budget (CAR) to $140 from $170 and keeps a Buy rating on the shares. The firm lowered estimates for Avis Budget ahead of Q1 reporting as it notes that Hertz’s (HTZ) results suggest there is risk of meaningfully higher fleet costs than projected. However, in addition to deteriorating residual values on internal combustion engine and electric vehicles, Hertz’s earnings “had a few other bank shots” for Avis Budget and the broader rental car industry and offered some positives, the analyst tells investors. Avis has historically been the stronger and better performing public U.S. rental car company and BofA thinks the stock is trading at an attractive valuation, the analyst added.