Avis Budget Group Inc. / Hertz Global Holdings Inc.: Rental Car 2Q Early Look: fundamentals trending well, CAR benefits on systems in-house; u/g CAR to EW

Research evidence excerpt

Avis Budget Group Inc. / Hertz Global Holdings Inc.: Rental Car 2Q Early Look: fundamentals trending well, CAR benefits on systems in-house; u/g CAR to EW

Equity Research

8 June 2026

Avis Budget Group Inc. / Hertz Global Holdings Inc.

Rental Car 2Q Early Look:

fundamentals trending well, CAR

U.S. Autos & Mobilitybenefits on systems in-house; u/g

NEUTRAL

UnchangedCAR to EW U.S. Autos & Mobility

Key takes: 1. CAR bringing systems in- Dan Levy

+1 212 526 3212

house potential $50-75mn EBITDA opty in '27, pricing and dan.levy@barclays.com

DPU trending better. Upgrade to EW, PT to $160; 2. Upside on BCI, US

CAR est's, potential for CAR to raise '26 guide; 3. Remain Josh Cho +1 212 526 7156

below guide on HTZ - q's on HTZ opex, liquidity remains in joshua.cho@barclays.com

focus. HTZ reit UW, $3 PT BCI, US

Joshua Young

+1 212 526 3280

As 2Q progresses, we update our views on car rental stocks (CAR, HTZ). Specifically, we believe jryoung@barclays.com

that much of the favorable fundamentals that we saw in 1Q are continuing into 2Q, with BCI, US

datapoints arguably accelerating. Datapoints on used car pricing are strong (providing hopes of

improved depreciation commentary). And on pricing, the key story out of 1Q was that Americas

pricing finally turned positive, with the best result for CAR/HTZ in the past four years – we

believe ongoing travel demand appears steady, and 2Q may see some benefit from the World

Cup.

While we remain below consensus / guidance for HTZ amid questions on operating expenses,

we see upside on estimates for CAR, and with potential for a guidance raise. Not only do we

believe datapoints on depreciation + pricing are trending better, but CAR also has an

opportunity for an earnings boost by bringing systems in-house – notably its decision to