Morgan Stanley analyst Adam Jonas resumed coverage of Avis Budget (CAR) with an Underweight rating and $30 price target, as he believes the company, and the U.S. car rental industry, may have a hard time raising prices sufficiently to offset rising vehicle depreciation costs. Both Avis and Hertz (HTZ) are "heavily dependent" on the used car market and credit environment, said Jonas, who also reiterated an Underweight rating on Hertz, though he increased his price target on its shares to $15 from $13.

Deutsche Bank analyst Chris Woronka lowered the firm's price target on Hertz (HTZ) to $6 from $10 and keeps a Hold rating on the shares. The Q1 car rental results are likely to confirm what all relevant data points have been pointing to since January: it will be a weak quarter across the board, the analyst tells investors in a research. However, the firm believes strongly that Q1 will prove to be the trough of the post-COVID correction cycle. It has a "clear preference" for owning Avis (CAR) over Hertz, saying the latter's recent CEO change introduces near-term risks associated with potential strategic pivots.