Bank of America analyst John Babcock has revised his projection for Avis Budget Group (CAR, Financial), lowering the company's target price from $120 to $105, while maintaining a Buy rating on the stock. Despite a strong demand environment for the U.S. rental car market in the first quarter, Babcock's analysis reflects cautious adjustments to Avis's 2025 forecasts due to significant trade developments.
The decision to lower the price target considers the impact of newly announced tariffs, including a 25% levy on imported vehicles and auto parts. While passenger volume growth through TSA screening points has shown signs of stagnation, the core demand within the rental segment remains robust, necessitating only minor adjustments to the immediate quarterly estimates.
Overall, Avis Budget Group remains in a favorable position for investors, although the implications of international trade dynamics present potential headwinds in the years ahead.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Avis Budget Group Inc (CAR, Financial) is $110.43 with a high estimate of $138.00 and a low estimate of $95.00. The average target implies an upside of 55.82% from the current price of $70.87. More detailed estimate data can be found on the Avis Budget Group Inc (CAR) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, Avis Budget Group Inc's (CAR, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Avis Budget Group Inc (CAR, Financial) in one year is $218.26, suggesting a upside of 207.97% from the current price of $70.87. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Avis Budget Group Inc (CAR) Summary page.
