Research Firm Analysis Supports Bullish View of Auto Rental Sector

Auto rental demand is expected to stabilize in 2010, an indication of the early stages of a recovery, according to a recent analysis by equity trading and research firm MKM Partners LLC.

The analysis also found that consumers consider “best overall value” more important than “cheapest.” This supports MKM’s view that auto rentals are relatively price inelastic and the industry can maintain pricing power.

In addition, the analysis found that consumers have a strong interest in ancillary products, such as insurance coverage and navigation systems.

To read the report, visit http://www.capmarkets.com/ViewFile.asp?ID1=321053&ID2=342062717&ssid=2&directory=10954&bm=0&filename=MKM_Agnew_AR_11_16_09.pdf.

 

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