Morgan Stanley sticks with bearish view on Avis Budget
- Morgan Stanley weighs in on the earnings report turned in by Avis Budget (CAR -1.1%).
- "Overall, the beat in Americas was driven by lower depreciation costs which offset a miss across the board in the international segment and see this as a slightly positive / in-line result," notes analyst Adam Jonas.
- Jonas and team keep an Underweight rating on Avis amid concerns that the auto cycle is at a top with record high used car pricing, driving lower depreciation costs for the rentals. The trend is called unsustainable in the long-run. The firm's bearish view on CAR runs counter to the sell-side average rating of Outperform.
- Previously: Avis Budget -6% after EBITDA miss (Aug. 6)