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- As pricing pressures linger on the rental car business, Goldman Sachs expects Avis (NASDAQ:CAR) to fare much better than its peers given its lean cost base and lower exposure to electric vehicles, unlike competitor Hertz (NASDAQ:HTZ).
- Hertz (HTZ) took a big bet on EVs, adding 20K to its fleet and is now faced with the daunting task of selling a third, a process that Goldman Sachs thinks might take longer and require a larger investment than expected given the age of its fleet.
- Accordingly, Goldman upgraded Avis (CAR) to Neutral from Sell and lifted its price target by 10% to $130, and downgraded Hertz (HTZ) to Sell from Neutral, trimming the price target by a dollar to $7.
- Avis (CAR) shares are higher by 2.2% ahead of Thursday’s open. Hertz (HTZ) shares are 4% lower.