Avis shares soar 7% as Goldman upgrades to buy from sell
Shares of Avis Budget Group Inc. CAR, +9.12% soared 7.1% Monday, after Goldman Sachs upgraded the stock to buy from sell, saying valuation looks attractive as most of the headwinds facing the company and industry are priced in. "Further, between the two public Rental Car companies, we view CAR as the better operator and should be able to improve results (EBITDA and Free cash flow) through cost optimization strategies in 2019+," analysts led by David Tamberrino wrote in a note. "And while we still see challenges facing the industry – as we think there is a lack of discipline over a long time period, we think pricing and volume are holding up well and residual value risk may be skewed to the upside as Auto OEMs have shown discipline recently on incentives." Goldman said it is sticking with a sell rating on Hertz Global Holdings Inc. HTZ, +8.80% which was up 7.1%. Avis shares have gained 22.5% in 2019 so far, while the S&P 500 SPX, +0.12% has gained 8%.
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