Analysts Hold a Steady Opinion on Avis Budget Group (CAR)
January 7, 2023
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Avis Budget ($NASDAQ:CAR) Group, Inc. (CAR) is a leading global provider of vehicle rental and car-sharing services. The company operates a variety of rental car brands, including Avis and Budget, as well as Zipcar, its car-sharing service. Analysts have been taking a steady stance on CAR stock. The consensus rating of “Hold” has been maintained by the ten brokerages that are covering the stock. This means that analysts on average do not recommend buying or selling the stock. Analysts typically rate a stock as a “Buy” or “Sell” when they feel the stock’s price is expected to move significantly in either direction. Analysts who have recently ratings on CAR include Goldman Sachs, which recently upgraded the stock from “Neutral” to “Buy”.
Barclays Capital also maintained their “Equal Weight” rating on the stock, citing the company’s strong presence in the car-sharing market and improving fundamentals. Other analysts have also given CAR a “Hold” rating, citing its slow growth and weak cash flow. Overall, analysts seem to be taking a wait-and-see approach to CAR stock. While some analysts see potential in the stock, others remain cautious due to its slow-growth environment and weak cash flow. Investors should carefully consider all of the analyst ratings before making any investment decisions.
Price History
On Tuesday, Avis Budget Group (CAR) stock opened at $165.8 and closed at $164.8, up by 0.5% from the previous closing price of $163.9. This is good news for shareholders, especially considering that analysts have maintained a steady opinion on the company. Analysts’ views on Avis Budget Group are generally positive in the long-term, with a consensus recommendation of “Buy”. Analysts have also commented favorably on the company’s financial performance. Avis Budget Group has posted several consecutive quarters of strong revenue growth and has consistently delivered on its financial guidance.
In addition, the company’s balance sheet is solid, with a relatively low debt-to-equity ratio and ample cash reserves. The company’s strong fundamentals and impressive financial performance have led to a steady opinion on the stock. While any investment carries some risk, analysts believe that Avis Budget Group is well positioned to deliver solid returns in the coming months and years. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Avis Budget. More…
| Total Revenues | Net Income | Net Margin |
| 11.79k | 2.72k | 22.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Avis Budget. More…
| Operations | Investing | Financing |
| 4.8k | -4.95k | -29 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Avis Budget. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 25.2k | 25.7k | -13.62 |
Key Ratios Snapshot
Some of the financial key ratios for Avis Budget are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.2% | 104.6% | 33.0% |
| FCF Margin | ROE | ROA |
| 23.2% | -418.6% | 9.7% |
VI Analysis
Investors seeking to identify long-term prospects of a company should consider its fundamentals. Through the VI app, analyzing the fundamentals of Avis Budget Group (AVIS) is made easier. The VI Star Chart signals an intermediate health score of 5/10 for AVIS in terms of cash flows and debt, suggesting that it may be able to pay off debt and fund future operations. Furthermore, it is strong in assets and growth, medium in profitability, and weak in dividends. AVIS is classified as a ‘gorilla’, a company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. Investors looking for a company with long-term potential may find AVIS attractive. Those seeking dividends may be put off by the weak dividend score and look for other companies with stronger performances in this area. Investors looking for a company with potential for long-term growth may find AVIS appealing, as its assets and growth scores are strong. Those seeking a company with strong profitability may prefer to invest in a different firm, as AVIS performs relatively poorly in this area. Overall, AVIS is a company that offers some promise for long-term investors. Its strong assets and growth scores indicate potential for growth, while its intermediate health score suggests that it can pay off its debt and fund future operations. However, investors seeking dividends or strong profitability may prefer to invest in other companies with better scores in those areas. More…
VI Peers
Its competitors include Hertz Global Holdings Inc, Localiza Rent A Car SA, and HyreCar Inc. Avis Budget Group Inc has a strong market position and offers a variety of car rental services that its competitors cannot match.
– Hertz Global Holdings Inc ($NASDAQ:HTZ)
Hertz Global Holdings Inc is a holding company that operates through its subsidiaries. The company’s principal business is car rental. It has a market cap of 6.63B as of 2022 and a Return on Equity of 70.21%. The company has operations in the United States, Europe, Latin America, Asia, Australia, New Zealand, and Africa.
– Localiza Rent A Car SA ($OTCPK:LZRFY)
Localiza Rent A Car SA is a Brazilian car rental company. The company has a market cap of 12.8B as of 2022 and a return on equity of 32.33%. Localiza is the largest car rental company in Brazil and has a strong presence in South America. The company offers a wide range of services, including car rental, fleet management, and vehicle financing. Localiza has a strong customer base and a large number of locations across Brazil.
– HyreCar Inc ($NASDAQ:HYRE)
HyreCar Inc. is a car sharing marketplace that connects vehicle owners with ride-sharing, food and package delivery companies. The Company offers a range of services for car owners, including insurance, financing, and maintenance. It also provides a range of services for ride-sharing and delivery companies, including background checks, vehicle financing, and vehicle maintenance.
Summary
Investment analysts have maintained a consistent opinion on Avis Budget Group (CAR), a global provider of vehicle rental services. Analysts have concluded that the company’s financials are strong and its business is stable, with a good track record of earnings growth. They note that CAR’s impressive revenue growth and strong balance sheet are attractive features for investors.
Additionally, analysts point to CAR’s low debt levels and attractive dividend yield as positive factors. Finally, they believe the company’s strategic initiatives and cost-cutting efforts should help it continue to grow in the future.
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