Analyst Review – 01/25/24

Upgrades

$CAR – Avis Budget Group Inc
Recent News
Deutsche Bank upgraded Avis Budget Group from a “hold” to a “buy” rating, setting a new price target of $248.00, up from $234.00, indicating a potential 48.59% increase from the current stock price. This contrasts with other analysts’ views, including a “sell” rating from Goldman Sachs with a $164.00 target and a downgrade to “sell” by StockNews.com. The company’s stock opened at $166.90, with a 52-week range of $156.74 to $251.26, and a market cap of $6.05 billion. Avis Budget reported a quarterly EPS of $16.78, surpassing estimates. The CEO and EVP recently sold shares, with insiders owning 37.30% of the company.

Brokerage Firm: Deutsche Bank
Rating Change: Hold >> Buy
Price Target: $234 >> $248

$TGI – Triumph Group
Recent News
Triumph Group received an upgrade from Bank of America, changing from an “underperform” to a “buy” rating, with a new target price set at $21.00, up from $9.00, suggesting a 36.45% potential upside. Other research firms have also revised their ratings; Robert W. Baird and TD Cowen upgraded Triumph Group to “outperform,” while JPMorgan Chase & Co. and Barclays gave mixed ratings. The company’s stock opened at $15.39, with a market cap of $1.18 billion. The latest quarterly earnings surpassed estimates, with a reported EPS of $0.01 against expected ($0.01), and a 15.1% year-over-year revenue increase. Institutional investors have been actively adjusting their holdings in the company.

Brokerage Firm: BofA Securities
Rating Change: Underperform >> Buy
Price Target: $9 >> $21

Downgrades

$HTZ – Hertz Global Holdings Inc
Recent News
J.P. Morgan analyst Ryan Brinkman downgraded Hertz Global Holdings Inc. to neutral from overweight, reducing the price target from $17 to $11, a 35% cut. This downgrade follows Hertz’s announcement of reducing its electric vehicle (EV) fleet size due to low demand and high costs, particularly related to its association with Tesla. Brinkman estimates this Tesla partnership is costing Hertz over $500 million, largely due to depreciation expenses from Tesla’s steep new-vehicle discounts and challenges in obtaining replacement parts for EV maintenance. Concurrently, Deutsche Bank’s Chris Woronka also downgraded Hertz, while upgrading rival Avis. Amidst these downgrades, Hertz’s stock has fallen 14% over the past three months, contrasting with Avis’s 2.7% gain and the S&P 500’s 16.7% rally. Currently, only one of the eight analysts covering Hertz remains bullish.

Brokerage Firm: JP Morgan
Rating Change: Overweight >> Neutral
Price Target: $17 >> $11

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