Avis Budget initiated with an Equal Weight at Barclays

Barclays analyst Dan Levy initiated coverage of Avis Budget with an Equal Weight rating and $105 price target. The company “has proven itself as a solid executor,” with a clear number position in the U.S. rental car business, behind Enterprise, the analyst tells investors in a research note. However, the firm believes some of the potential near-term “lumpiness” in the rental industry via increased fleet availability, temporarily elevated depreciation expense, and potential impact from Hertz’s fleet rebalance may limit Avis Budget’s upside. It sees downside risk for Avis shares in the event of further instability and liquidity issues at Hertz.