What Avis Budget Group (CAR)'s Waymo Partnership and SRS Deal Mean for Its Autonomous Ambitions

• Earlier this week, Avis Budget Group amended its cooperation agreement with SRS Investment Management to allow SRS to own up to 45% of voting securities and introduced new limits on board representation. In addition, Waymo announced a collaboration with Avis to launch a fully autonomous ride-hailing service in Dallas slated for public rollout in 2026.
• This dual development signals Avis is expanding deeper into autonomous mobility while also adjusting its shareholder and board structure in response to a major investor’s growing influence.
• We’ll explore how the Waymo partnership could reshape Avis’s long-term narrative and its positioning in the autonomous vehicle market.

AI is about to change healthcare. These 31 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

Avis Budget Group Investment Narrative Recap

To be a shareholder in Avis Budget Group, you need to believe in the company’s ability to leverage premiumization, scale technology-driven mobility initiatives, and expand into autonomous vehicle markets, all while maintaining disciplined cost controls. The announcement of the SRS Investment Management agreement amendment and Waymo partnership does not materially alter the key short-term catalyst, execution on new product launches like Avis First, or the principal risk, which is underperformance in premium and tech-driven services amid rising competition.

Of recent updates, the launch of Avis First, a new premium rental experience, stands out for its potential impact on revenue per rental and margin improvement. This is particularly relevant as investors watch whether premiumization efforts can offset industry pricing pressures and drive earnings growth, especially in a period when topline and profitability have faced headwinds.

However, it’s important to consider that unforeseen shifts in consumer mobility preferences could undermine...

Read the full narrative on Avis Budget Group (it's free!)

Avis Budget Group's outlook points to $12.2 billion in revenue and $1.0 billion in earnings by 2028. This implies a 1.4% annual revenue growth and a $3.2 billion increase in earnings from the current -$2.2 billion level.

Uncover how Avis Budget Group's forecasts yield a $148.00 fair value, a 5% downside to its current price.

Exploring Other Perspectives

Simply Wall St Community members peg Avis Budget Group’s fair value from US$148 to US$246.44, based on two independent estimates. While optimism surrounds new premium and autonomous growth initiatives, market participants should also weigh risks from changing mobility habits and the impact these could have on sustained earnings.

Explore 2 other fair value estimates on Avis Budget Group - why the stock might be worth as much as 58% more than the current price!

Build Your Own Avis Budget Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Avis Budget Group research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Avis Budget Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Avis Budget Group's overall financial health at a glance.

Curious About Other Options?

Our top stock finds are flying under the radar-for now. Get in early:

• Outshine the giants: these 26 early-stage AI stocks could fund your retirement.
• Uncover the next big thing with financially sound penny stocks that balance risk and reward.
• We've found 18 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com