Update shared on 11 Dec 2025
Fair value Increased 2.49%Analysts have modestly raised their price target on Avis Budget Group from 135.75 dollars to 139.13 dollars, reflecting updated assumptions for slightly slower revenue growth, softer profit margins, and a higher future earnings multiple.
What's in the News
- Avis Budget Group completed its long running share repurchase program announced in August 2013, having bought back 83,626,152 shares for a total of about 7.36 billion dollars, with no additional shares repurchased in the most recent quarter of the program (Key Developments).
- The company announced the European launch of Avis First, a premium concierge style service aimed at high value travelers. It will be initially available from October 22, 2025 at Rome Fiumicino, Geneva International, and Zurich Kloten airports, with further global expansion planned (Key Developments).
- Avis First customers are met at arrivals by a dedicated representative, escorted directly to a guaranteed premium BMW located near the terminal, and can return vehicles via a dedicated drop off area near departures for a faster, low friction experience (Key Developments).
- The Avis First service is supported by a VIP phone line and a mobile app based reservation and pick up system, with the option to return vehicles without refueling at pump equivalent rates, highlighting the firm’s focus on convenience and premium positioning (Key Developments).
Valuation Changes
- Fair Value: risen slightly from 135.75 dollars to approximately 139.13 dollars per share, reflecting updated model assumptions.
- Discount Rate: unchanged at 12.5 percent, indicating a consistent view of the company’s risk profile.
- Revenue Growth: reduced modestly from about 1.90 percent to about 1.87 percent annually, signaling slightly lower top line expectations.
- Net Profit Margin: fallen slightly from roughly 7.54 percent to about 7.11 percent, indicating expectations for softer profitability.
- Future P/E: increased moderately from about 7.25 times to about 7.88 times forward earnings, implying a somewhat higher valuation multiple.
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