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Avis Budget price target raised to $73 from $67 at Morgan Stanley » 07:0005/0505/05/21
Morgan Stanley analyst…
Morgan Stanley analyst Billy Kovanis raised the firm's price target on Avis Budget to $73 from $67 and keeps an Equal Weight rating on the shares as he now forecasts adjusted EBITDA to rise to $742M in 2021, versus $460M forecasted prior to the company's Q1 beat. While fundamentals keep improving and Kovanis sees an almost "perfect environment" for a rental player to be operating in, he thinks upside may be subdued after the strong run-up in the stock given his view that the market "has been looking ahead to this moment since mid-2020," he tells investors.
Avis Budget price target raised to $75 from $69 at Deutsche Bank » 06:5905/0505/05/21
Deutsche Bank analyst…
Deutsche Bank analyst Chris Woronka raised the firm's price target on Avis Budget to $75 from $69 and keeps a Hold rating on the shares. While the company's Q1 report "neatly checked all of the boxes, and then some, for bulls," there quickly came a realization in the market that Avis will now be facing exceedingly difficult compares earlier than anticipated, Woronka tells investors in a research note.
Avis Budget price target raised to $83 from $70 at Barclays » 06:4005/0505/05/21
Barclays analyst Brian…
Barclays analyst Brian Johnson raised the firm's price target on Avis Budget to $83 from $70 and keeps an Equal Weight rating on the shares following the company's Q1 results. The analyst incensed estimates for the year but says Avis remains a "battleground stock" for 2022 and beyond earnings. Johnson now expects 2021 to represent peak earnings, at least through 2023 due to tight fleets, pricing elevated through the year, and record high used car prices.
Avis Budget price target raised to $69 from $50 at Deutsche Bank » 06:5805/0405/04/21
Deutsche Bank analyst…
Deutsche Bank analyst Chris Woronka raised the firm's price target on Avis Budget to $69 from $50 and keeps a Hold rating on the shares. The analyst expects the company to report "meaningful upside" to consensus estimates in Q1. However, he believes "quite a bit of good news" and upside to current consensus is already reflected in the stock.
Fly Intel: After-Hours Movers » 18:4205/0305/03/21
CHGG, CC, KFRC, RMBS, SANM, IRBT, MAXR, LGND, MOS, VNOM, VRNS, CAR, SEDG, ADUS, BOOM, HLIT
UP AFTER EARNINGSChegg…
Avis Budget reports Q1 EPS ($2.43), consensus ($2.14) » 16:0505/0305/03/21
Reports Q1 revenue…
Reports Q1 revenue $1.37B, consensus $1.28B. As demand started to recover in the Americas in the back half of the quarter, we optimized our fleet, resulting in higher utilization, and took advantage of pricing opportunities. We finished the quarter with Revenue per Day increasing 12% from prior year in the Americas. A strengthening Revenue per Day environment combined with our continued cost mitigating actions resulted in the Americas achieving a record first quarter Adjusted EBITDA margin. Our liquidity position at the end of the quarter was approximately $1.2 billion with an additional $4.8 billion of fleet funding capacity. We have well-laddered corporate debt maturities with no meaningful maturities until 2023. "Our first quarter results show our continued recovery through cost discipline and fleet optimization driving higher utilization, while reducing global per unit fleet costs," said Joe Ferraro, Avis Budget Group Chief Executive Officer. "The Americas achieved its best first quarter Adjusted EBITDA margin on one of its lowest first quarter revenue bases and continues to prove that our cost saving initiatives are expected to continue to deliver strong results. These accomplishments are a great way to kick off the 75th anniversary of our Avis brand."
Zipcar expands partnership with Philadelphia to increase car sharing access » 12:1604/2104/21/21
Zipcar, a subsidiary of…
Zipcar, a subsidiary of Avis Budget, said it is building on its partnership with the City of Philadelphia and the Philadelphia Parking Authority with the addition of nearly 50 Zipcar vehicles to convenient, designated on-street parking spots across the city. Zipcar has hundreds of vehicles across key Philadelphia neighborhoods, including South Philly, Spring Valley, West Philly, University City, Fishtown, Old City, Washington Square, University City, and Rittenhouse, for convenient pick-up and return. "Car share reduced auto trips and parking demands in Philadelphia neighborhoods. We are pleased that Zipcar has chosen to invest in Philadelphia and add to residents' transportation choices, " said Mike Carroll, Deputy Managing Director for the Office of Transportation, Infrastructure, and Sustainability at the City of Philadelphia.
Avis Budget price target raised to $70 from $42 at Barclays » 06:5704/2104/21/21
Barclays analyst Brian…
Barclays analyst Brian Johnson raised the firm's price target on Avis Budget to $70 from $42 and keeps an Equal Weight rating on the shares. "Tight fleets and rebounding demand should drive red-hot pricing this summer," Johnson tells investors in a research note. Travel demand is picking up, fleets are tighter as a result of chip shortages and residual values are climbing to new highs, Johnson tells investors in a research note. As a result, Avis and the rental industry are entering "peak profit generation mode into the travel rebound summer," says the analyst.
Fly Intel: Top five analyst downgrades » 09:5804/2004/20/21
NKE, CAR, CLNE, STL, OVID
Catch up on today's…
Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Nike (NKE) downgraded to Neutral from Buy at Citi with analyst Paul Lejuez saying he believes in Nike's long-term growth and margin expansion story but he sees near-term pressures due to a slowdown in demand in China related to the Xinjiang cotton issue. 2. Avis Budget (CAR) downgraded to Neutral from Buy at BofA with analyst John Murphy saying he is adjusting his U.S. auto sales and North American auto production forecasts, effectively raising year-over-year growth forecasts for U.S. sales in 2021, but lowering 2022, while simultaneously lowering year-over-year growth forecasts for North American production in 2021, but raising 2022. 3. Clean Energy (CLNE) downgraded to Underperform from Market Perform at Raymond James with analyst Pavel Molchanov citing Clean Energy's announcement that it plans to supply fuel to a modest number of Amazon (AMZN) trucks, the latest instance of sentiment-driven multiple expansion with "minimal read-through" for profitability. 4. Sterling Bancorp (STL) downgraded to Neutral from Buy at Janney Montgomery and B. Riley following the merger with Webster Financial (WBS). 5. Ovid Therapeutics (OVID) downgraded to Neutral from Overweight at Cantor Fitzgerald with analyst Charles Duncan saying the downgrade is driven by a lack of visibility on early-stage programs entering the clinic that would result in value creating events. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
Avis Budget downgraded to Neutral from Buy at BofA » 06:4004/2004/20/21
BofA analyst John Murphy…
BofA analyst John Murphy downgraded Avis Budget to Neutral from Buy, citing valuation. Murphy is adjusting his U.S. auto sales and North American auto production forecasts, effectively raising year-over-year growth forecasts for U.S. sales in 2021, but lowering 2022, while simultaneously lowering year-over-year growth forecasts for North American production in 2021, but raising 2022.