Deutsche Bank Downgrades Avis Budget Group to Hold After 91% Stock Surge

Deutsche Bank has downgraded Avis Budget Group (CAR) from Buy to Hold, setting a new price target of $128 per share. The downgrade follows a massive rally where the stock surged approximately 91% over the past two months, significantly outperforming the S&P 500 index. Analysts noted that the recent price action was largely driven by technical factors and a potential short squeeze linked to Pentwater Capital Management filings. The bank emphasized that the current valuation is difficult to justify based on fundamental metrics, despite observing improving business trends. While the long-term potential in the autonomous vehicle market remains, the rapid price appreciation has limited the immediate upside. This rating change is expected to create selling pressure as investors weigh the stock's fundamental value against its recent technical momentum.