- Avis Budget Group (CAR, Financial) is grappling with significant financial challenges, including a steep decline in earnings per share over the past five years despite revenue growth.
- Analysts predict a potential upside of 28.01% for the stock, with a current consensus rating of "Outperform."
- GuruFocus estimates suggest a substantial upside of 158.02% based on the company's GF Value, calculated using historical and future performance metrics.
Avis Budget Group (CAR) is navigating turbulent financial waters, with an alarming 73.4% annual decline in its earnings per share over the past five years. This is contrasted by a modest revenue increase of 5.1%. Compounding these challenges is the company's significant debt load of $5.39 billion, which considerably outweighs its relatively modest cash reserve of $534 million. This financial imbalance raises concerns about potential capital constraints.
Wall Street Analysts Forecast
Wall Street analysts offer a mixed yet optimistic view on Avis Budget Group (CAR). Based on a survey of 7 analysts, the average one-year price target stands at $108.29, ranging from a low of $95.00 to a high of $138.00. This average target suggests a potential upside of 28.01% from the current trading price of $84.59. For more in-depth predictions, visit the Avis Budget Group Inc (CAR, Financial) Forecast page.
The consensus recommendation, gathered from 9 brokerage firms, positions Avis Budget Group (CAR) at an average recommendation of 2.2. This translates to an "Outperform" status, indicating positive market sentiment. This rating is based on a scale from 1 to 5, where 1 is a "Strong Buy" and 5 is a "Sell."
According to GuruFocus estimates, the forecasted GF Value for Avis Budget Group (CAR) in the coming year is projected at $218.26. This suggests an impressive upside potential of 158.02% from the current price of $84.59. The GF Value is GuruFocus' fair value estimation, derived from historical trading multiples and both past and projected business growth metrics. For a more comprehensive analysis, explore the Avis Budget Group Inc (CAR, Financial) Summary page.
