Avis Budget price target lowered to $233 from $260 at Deutsche Bank

Deutsche Bank lowered the firm’s price target on Avis Budget (CAR) to $233 from $260 and keeps a Hold rating on the shares. Hertz (HTZ) kicks off Q3 car rental earnings on Thursday, October 26, with Avis to follow a week later, the analyst noted. Even if the pair’s Q3 reports contain limited surprises, the firm expects “a healthy debate to carry on post reporting season regarding the outlook for 2024” and lowered its price targets on both in light of it own 2024 forecast revisions, the analyst tells investors. As noted previously, Woronka also placed a “Catalyst Call: Buy” on shares of Avis Budget as a short-term investment idea. The level of concern implicitly priced into the stock regarding a faster or more severe pace of “normalization” on pricing or residual values is too extreme, said the analyst, who believes the stock can rally as Avis Budget’s results and outlook are digested by the market.