JPMorgan analyst Ryan Brinkman upgraded Avis Budget Group to Overweight from Neutral with a price target of $231, up from $230. As one of the leading players in the global rental car industry, Avis is “well positioned to leverage growth in the industry and represents an attractive investment opportunity,” Brinkman tells investors in a research note. The analyst see “several tailwinds” for the business, including increased demand for rental cars as economies reopen, revenue per day remaining elevated given limited supply of rental cars due to the semiconductor chip shortage situation constraining global light vehicle production, and tee company becoming leaner during the pandemic, allowing its cost structure to become more flexible. Brinkman expects strong EBITDA and free cash flow to allow for “allocation of capital toward shareholder friendly activities.”
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