Avis Stock Nears Biggest Monthly Gain in 12 Years
(Bloomberg) -- Shares of Avis Budget Group Inc. posted their best month in more than 12 years thanks to strong demand for rental vehicles, soaring prices of used cars and a newfound fandom among retail investors.
A structural change in the pricing power of rental-car companies is allowing Avis and peer Hertz Global Holdings Inc., which recently emerged from bankruptcy, to have better control over what they can charge, Jefferies analyst Hamzah Mazari said on Monday. Mazari also raised his price target on Avis by more than threefold, to reflect the company's potential to sustain higher margins.
Avis shares rose 58% in November, compared with a 0.8% decline in the S&P 500 Index over the same period amid concerns about the omicron variant of the coronavirus and a more hawkish tone from Federal Reserve Chair Jerome Powell.
Morgan Stanley analysts Billy Kovanis and Adam Jonas on Tuesday said that while omicron may have some impact on Avis' earnings in the fourth quarter of this year and the first quarter of 2022, in the medium to long term they remain “very bullish” on a return of travel, led by significant pent-up demand.
“There are also dynamics at play that could also lead to Avis becoming a Covid beneficiary from: supply constraints, car rental acting as a substitute to airline travel, etc.,” the analysts added.
©2021 Bloomberg L.P.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
