Avis Budget Group (NASDAQ:CAR) Stock Rating Lowered by Zacks Research

Avis Budget Group (NASDAQ:CAR) was downgraded by research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report released on Monday,Zacks.com reports.

Other equities research analysts have also recently issued reports about the stock. JPMorgan Chase & Co. boosted their price objective on shares of Avis Budget Group from $155.00 to $170.00 and gave the company an “underweight” rating in a research report on Tuesday, June 23rd. Wall Street Zen lowered Avis Budget Group from a “hold” rating to a “sell” rating in a report on Saturday. Morgan Stanley increased their price objective on Avis Budget Group from $97.00 to $99.00 and gave the stock an “equal weight” rating in a report on Wednesday, May 20th. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $125.00 target price on shares of Avis Budget Group in a research report on Friday, May 1st. Finally, Barclays set a $160.00 target price on Avis Budget Group and gave the company an “equal weight” rating in a research note on Monday, June 8th. Five investment analysts have rated the stock with a Hold rating and five have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus target price of $132.75.

Avis Budget Group Stock Up 1.6%

CAR stock opened at $141.13 on Monday. The business has a fifty day moving average of $166.78 and a 200-day moving average of $167.62. The company has a market cap of $4.99 billion, a P/E ratio of -7.77 and a beta of 1.92. Avis Budget Group has a twelve month low of $85.96 and a twelve month high of $847.70.

Avis Budget Group (NASDAQ:CAR) last posted its earnings results on Tuesday, July 28th. The business services provider reported $0.98 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.05 by ($1.07). The company had revenue of $3 billion during the quarter, compared to analyst estimates of $3.10 billion. The business’s quarterly revenue was down 1.3% compared to the same quarter last year. During the same period last year, the firm posted $0.10 earnings per share. As a group, equities research analysts anticipate that Avis Budget Group will post 1.69 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Avis Budget Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CAR. Royal Bank of Canada boosted its holdings in shares of Avis Budget Group by 414.0% during the 1st quarter. Royal Bank of Canada now owns 17,860 shares of the business services provider’s stock worth $1,355,000 after buying an additional 14,385 shares during the period. Empowered Funds LLC lifted its position in Avis Budget Group by 10.1% during the first quarter. Empowered Funds LLC now owns 3,749 shares of the business services provider’s stock worth $285,000 after acquiring an additional 343 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Avis Budget Group by 16.6% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 65,023 shares of the business services provider’s stock worth $4,935,000 after acquiring an additional 9,246 shares during the last quarter. Prudential Financial Inc. bought a new stake in shares of Avis Budget Group during the second quarter worth approximately $352,000. Finally, EverSource Wealth Advisors LLC boosted its holdings in shares of Avis Budget Group by 19.6% during the second quarter. EverSource Wealth Advisors LLC now owns 427 shares of the business services provider’s stock worth $72,000 after acquiring an additional 70 shares during the period. 96.35% of the stock is owned by institutional investors.

Avis Budget Group News Roundup

Here are the key news stories impacting Avis Budget Group this week:

• Positive Sentiment: Despite the earnings shortfall, Avis reported fleet reductions, record vehicle utilization and improved adjusted EBITDA, indicating that tighter fleet discipline is helping protect margins. Management also reaffirmed its 2026 EBITDA guidance. Q2 earnings analysis
• Neutral Sentiment: Analysts remain focused on whether efficiency gains can offset soft rental demand. Avis faces weak liquidity and high leverage, while its valuation remains elevated relative to its financial risks, suggesting a cautious investor outlook. Avis valuation analysis
• Negative Sentiment: Avis’s latest quarter increased concerns about demand and earnings. The company reported $0.98 in adjusted earnings per share versus a $2.05 consensus estimate, while revenue of approximately $3.0 billion missed the $3.10 billion forecast and declined 1.3% year over year. The stock has fallen sharply since the report, despite the operational improvements. Avis Q2 earnings miss
• Negative Sentiment: Several law firms announced or promoted a securities class action on behalf of Avis investors who purchased securities between February 20, 2025, and April 21, 2026. The lawsuit, filed in federal court in Florida, names Pentwater Capital Management and executive Matthew Halbower and alleges violations of federal securities laws. The litigation adds headline and legal uncertainty, although the allegations have not been proven. Investors face a September 29, 2026 application deadline in the related action. Pomerantz class action announcement

Avis Budget Group Company Profile

Avis Budget Group, Inc operates as a leading global provider of vehicle rental and mobility solutions. Through its two core brands, Avis® and Budget®, the company offers a broad range of rental options including daily, weekly and monthly car rentals for leisure and business travelers. In addition to traditional airport and off-airport car rental services, Avis Budget Group delivers innovative mobility platforms such as car-sharing programs and connected fleet solutions designed to meet the evolving needs of corporate, government and individual customers.

The company’s roots trace back to Avis Rent a Car, founded in 1946, and Budget Rent a Car, established in 1958.