Avis Budget Group Short-Swing Profit Recovery from Pentwater Provides Optionality; Raise Dec 26 PT to $170 from $155; Remain UW on Post FIFA WC Fundamental Outlook

Research evidence excerpt

Avis Budget Group Short-Swing Profit Recovery from Pentwater Provides Optionality; Raise Dec 26 PT to $170 from $155; Remain UW on Post FIFA WC Fundamental Outlook

J P M O R G A N North America Equity Research

22 June 2026

Avis Budget Group

Short-Swing Profit Recovery from Pentwater Provides Underweight

Optionality; Raise Dec 26 PT to $170 from $155; CAR, CAR US

Remain UW on Post FIFA WC Fundamental Outlook Price (22 Jun 26):$188.43

▲Price Target (Dec-26):$170.00

Prior (Dec-26):$155.00

Raise December 2026 PT to $170 from $155 prior, reflecting the substantial

$650 mn cash infusion from the Section 16(b) violation settlement with Autos & Auto Parts

Pentwater. This incremental capital meaningfully enhances CAR’s strategic Rajat Gupta AC

flexibility, enabling targeted investments in ancillary growth initiatives (like (1-212) 622-6382

autonomous fleet management solutions) while reinforcing the company’s rajat.gupta@jpmorgan.com

competitive positioning in the legacy rental business (including enabling Jash Patwa

accelerated investments in Avis First). Balance sheet is now better insulated, (1-212) 622-5472

jash.patwa@jpmchase.com

affording management greater latitude to scale rental fleet while modestly

Yash Beswala

mitigating sensitivity to used vehicle pricing cycles. We also view the cash inflow

(1-212) 622-0028

as a potential catalyst for accelerated share repurchases, providing an additional yash.beswala@jpmchase.com

layer of valuation support. We maintain our Underweight rating as we believe J.P. Morgan Securities LLC

shares have already embedded much of the upside scenario, with visibility on

further catalysts for upward revisions beyond FIFA WC and America 250 driven

pricing benefit (see our recent report on the topic) low.