Avis Budget Group (CAR) is a leading operator of vehicle rental services in North America, Australia and New Zealand, and commands a strong network of more than 6,500 rental locations. Management initiatives to control costs and deployment of cash to reduce debt augur well for future operating performance.
Our long-term recommendation on Avis Budget is Outperform as we anticipate it to do better than the broader market. Avis Budget’s strong focus on cost reductions will help the company to achieve its goal of higher operating margins.
With the stabilization in travel volume, the combination of pricing and cost actions of the company will likely enhance the growth of the company. Also, the company’s higher exposure to the corporate world and greater financial leverage also adds to its advantage.Zacks Investment Research
