MKM Partners LLC, an institutional equity trading and research firm, has initiated coverage on Avis Budget Group, Dollar Thrifty Automotive Group and Hertz Global Holdings as follows:
- Initiating coverage on Avis Budget with a Buy rating and an $18 price target. CAR is positioned for significant EPS growth over the next two-years with EPS rising from an estimated loss of $0.01 this year, to $0.72 in 2010E and $1.40 in 2011E.
Avis Budget Group (CAR): At the Beginning of a Strong Three-Stage Earnings Recovery
- Initiating coverage on DTG with a Buy rating and a $33 price target. We believe that current strong leisure pricing can continue into 2010 due to tight-industry fleeting and stabilizing demand. We forecast EPS of $0.54 in 2009, $1.48 in 2010 and $2.20 in 2010.
Dollar Thrifty Group Inc. (DTG): Leisure Travel Pure-Play, Levered to Current Strong Leisure Pricing Environment
- Initiating coverage on Hertz with a Neutral rating and a $13 Fair Value. We see 43 percent potential upside driven by positive EPS revisions and P/E expansion over the next 12 months. Our Neutral rating is risk adjusted and relative to peers Avis Budget (CAR, Buy Rated) and Dollar Thrifty (DTG, Buy Rated), for which we forecast stronger earnings growth. (Chris Agnew)
Hertz Global Holdings Inc. (HTZ): Long-Term Strategic Value, But Lower Near-Term EPS Momentum versus Peers
Hertz Global Holdings Inc. management update: Yesterday, we met with Mark Frissora, the CEO of Hertz, Elyse Douglas, CFO, as well as Gerry Plescia, President of Hertz Equipment Rental (HERC) and the new President of Car Rental for the Americas, Scott Sider. (Chris Agnew)
Hertz Global Holdings Inc. (HTZ) Management Meetings Provide Increased Confidence in 2010 and Long-Term