Avis Budget (NASDAQ:CAR) is in the news Thursday after an upgrade from Morgan Stanley analyst Adam Jonas sent CAR stock soaring.
The upgrade from the Morgan Stanley analyst has CAR stock moving up from its old “equal-weight” rating to a new “overweight” rating. Jonas has high hopes for the company as used-car sales have continued to perform well throughout the novel coronavirus pandemic.
Here’s what Jonas has to say on the matter, as reported by TheStreet.com.
“Consumers have been buying new and used cars during the pandemic. Sales have been much more resilient than forecast. This has been driven by stimulus packages to consumers, credit availability and consumers reprioritizing car purchases vs. other forms of spending.”
Adam Jonas’ bullish stance on CAR stock doesn’t stop with just the Avis Budget upgrade news. It also includes a new price target for the stock. This has him increasing the price target for CAR stock from $25 per share to $37 per share.
The new price target for CAR stock is a 48% jump over the previous price target from the analyst. It’s also a 64.6% premium over the stock’s closing price of $22.48 on Wednesday.
The newest upgrade news for Avis Budget is also worth mentioning for another reason. This marks the first time in the history of Morgan Stanley’s coverage of CAR stock that it has ever given it an “overweight” rating.
CAR stock was up 13.4% as of Thursday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.