According to the Wise Finance APP, Morgan Stanley warns investors that by 2025, it is becoming more and more cautious about US car rental stocks.

Morgan Stanley analyst Adam Jonas stated that although the travel trends in 2024 remained stable overall, investors are now shifting their focus to pricing prospects. Jonas emphasized: "We believe that with the impact of the third-quarter hurricanes fading away, and Enterprise continuing to update its fleet to make it more competitive at airports, market competition is intensifying, and pricing uncertainty for the fiscal year 2025 may continue to rise. Airports account for more than 66% of Hertz (HTZ.US) and Avis Budget (CAR.US) passenger traffic."

Jonas stated that used car prices remained stable in 2024, but the uncertainty of Hertz Rent-A-Car increased the risk of depreciation prospects for the fiscal year 2025.

Morgan Stanley rates Hertz as "hold", lowering the target price from $7 to $3; rates Avis Budget as "shareholding", but lowers the target price from $160 to $120.

Morgan Stanley favors Avis Budget more, but emphasizes that future market risks will increase. Jonas stated: "Although rental car companies may experience periods of significant profit fluctuations, we believe Avis Budget has advantages in operational efficiency and financial condition."

So far this year, Hertz's stock price has fallen by 63%, while Avis Budget's stock price has fallen by 45%.