JPMorgan upgrades Avis Budget Group (NASDAQ:CAR) to a Neutral rating after having it set at Underweight. The firm thinks Avis is well positioned to leverage growth in the industry and represents an attractive investment opportunity. Tailwinds seen for Avis include higher demand for rental cars, strong pricing and cost-cutting at the company from management. Avis' balance sheet is also called historically strong, with lower cost of fleet financing, declining leverage and no near-term maturities;
JPMorgan assigns a price target of $205 to CAR by applying a 8.0X target EV/EBITDAP multiple to the 2023 EBITDA forecast.