Avis Budget’s higher impairment pushed out ‘clearing event’, says Goldman Sachs

Goldman Sachs keeps a Neutral rating and $95 price target on Avis Budget (CAR) after its Q4 results but notes that the size of the reported impairment and the headwinds related to an accelerated fleet refresh spilling into Q1 were “unexpected”. The firm expects trends to improve in the second half of the year and models the DPU exit rate of $300 as per the guidance on the call, but given the fleet cost benefits to the entire industry, it also sees limited pricing power and only models slight RPD – Revenue per Day – growth, the analyst tells investors in a research note.