Core Viewpoint - Avis Budget Group's stock has been downgraded from Buy to Underperform by BofA Securities, with a price target reduction from $120 to $113 due to unfavorable industry fundamentals and macroeconomic conditions [1][4]. Industry Overview - The U.S. rental car industry is experiencing pricing and demand pressures that are expected to negatively impact Avis Budget's earnings in the latter half of 2025 and into 2026 [1]. - A Bank of America survey indicates a decline in consumer expectations for increased travel spending over the next three months compared to the previous year, suggesting a softer pricing environment [2]. Company Performance - Avis Budget's growth initiatives, such as the premium-focused Avis First program and a fleet management partnership with Waymo, are recognized as positive long-term strategies but are not expected to significantly enhance near-term earnings [3]. - The analyst has revised EBITDA estimates to $0.9 billion for 2025 and $1.03 billion for 2026, down from previous forecasts of $0.95 billion and $1.2 billion [4]. - Expected sales for 2025 are projected at $8.09 billion, with an EPS of $9.43 [4]. Stock Performance - Avis Budget Group's stock is currently down 4.83%, trading at $149.06 at the time of publication [4].