Avis Budget Group (NASDAQ:CAR) Downgraded to “Strong Sell” Rating by Zacks Research

Zacks Research cut shares of Avis Budget Group (NASDAQ:CAR) from a hold rating to a strong sell rating in a research report released on Monday,Zacks.com reports.

CAR has been the subject of a number of other research reports. Morgan Stanley upped their target price 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. JPMorgan Chase & Co. lifted 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 note on Tuesday, June 23rd. Jefferies Financial Group downgraded Avis Budget Group from a “buy” rating to a “hold” rating and upped their target price for the stock from $112.00 to $160.00 in a research note on Friday, May 1st. Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a $125.00 price target on shares of Avis Budget Group in a research report on Friday, May 1st. Finally, The Goldman Sachs Group increased their target price on shares of Avis Budget Group from $85.00 to $95.00 and gave the stock a “sell” rating in a research note on Friday, July 24th. Five analysts have rated the stock with a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat, Avis Budget Group has a consensus rating of “Reduce” and an average price target of $132.75.

Avis Budget Group Stock Performance

Shares of NASDAQ CAR opened at $141.13 on Monday. The business’s 50 day moving average price is $166.78 and its 200-day moving average price is $167.62. Avis Budget Group has a fifty-two week low of $85.96 and a fifty-two week high of $847.70. The company has a market cap of $4.99 billion, a price-to-earnings ratio of -7.77 and a beta of 1.92.

Avis Budget Group (NASDAQ:CAR) last posted its quarterly earnings results on Tuesday, July 28th. The business services provider reported $0.98 EPS for the quarter, missing analysts’ consensus estimates of $2.05 by ($1.07). The firm had revenue of $3 billion for the quarter, compared to analysts’ expectations of $3.10 billion. The company’s revenue was down 1.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.10 EPS. Sell-side analysts predict that Avis Budget Group will post 1.69 earnings per share for the current year.

Hedge Funds Weigh In On Avis Budget Group

Hedge funds have recently modified their holdings of the business. UBS Group AG raised its position in Avis Budget Group by 37.3% in the 4th quarter. UBS Group AG now owns 2,964,807 shares of the business services provider’s stock valued at $380,444,000 after purchasing an additional 804,814 shares during the last quarter. Morgan Stanley increased its stake in Avis Budget Group by 38.1% in the fourth quarter. Morgan Stanley now owns 1,975,675 shares of the business services provider’s stock valued at $253,519,000 after purchasing an additional 545,574 shares during the period. Norges Bank purchased a new stake in shares of Avis Budget Group in the fourth quarter valued at about $45,900,000. Cibc World Market Inc. lifted its position in Avis Budget Group by 75.0% during the 4th quarter. Cibc World Market Inc. now owns 700,005 shares of the business services provider’s stock worth $89,825,000 after acquiring an additional 300,000 shares during the period. Finally, Hudson Bay Capital Management LP purchased a new position in Avis Budget Group in the 4th quarter valued at $32,080,000. 96.35% of the stock is currently owned by hedge funds and other 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

About Avis Budget Group

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.