Analysts rate Avis Budget Group Inc.(CAR:NSD) with an Underperform rating and a 12-month average target price of $196

STA Research
by: STA Research
Avis Budget Group Inc.

Analysts rate Avis Budget Group Inc with an Underperform rating and a 12-month average target price of $196 per share.

Yesterday Barclays maintained Avis Budget Group with an Equal-Weight rating and lowered the target price to $158 from $223 on the company’s stock.

Based on the Avis Budget Group Inc stock forecasts from 5 analysts, the average analyst target price for Avis Budget Group Inc is USD 196.00 over the next 12 months. Avis Budget Group Inc’s average analyst rating is Under-perform. Stock Target Advisor’s own stock analysis of Avis Budget Group Inc is Slightly Bullish , which is based on 7 positive signals and 4 negative signals. At the last closing, Avis Budget Group Inc’s stock price was USD 155.50Avis Budget Group Inc’s stock price has changed by +0.10% over the past week, -18.78% over the past month and +96.99% over the last year.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector

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