The near-term outlook for the Avis Budget Group (CAR) is difficult to ascertain. The truck rental business is experiencing pricing pressure and the economy is weakening. Revenue enhancement and cost cutting initiatives have been implemented that should fuel significant financial improvements. However, earnings visibility is limited, especially with a deteriorating economy and declining enplanements. Also, historical valuation data is unavailable for Avis Budget Group. Management has twice lowered guidance for 2008 in view of weaker-than-expected enplanements and lower commercial travel volumes. The Hold rating is maintained for Avis Budget Group.The target of $0.75 is based on a 7 P/E multiple on our 2009 depressed EPS estimate, which is approximately where a 5% cyclical growth company (with a levered balance sheet and exposed to the risk of falling residual values of its rental fleet) should be valued with the U.S. economy in a recession....

EV Transportation is a unique car rental company in that it is the only truly environmentally-friendly group of its kind, solely offering electric and low-emission vehicles. EV is currently in the process of positioning itself for intense growth in a rapidly evolving sector of the car rental industry. As of 2007, the industry as a whole logged revenues of roughly $21 billion, more than ninety percent of which was generated by the following four top players: Enterprise (including recently acquired Alamo and National brands), Avis Budget Group, Hertz Global Holdings, and the Dollar Thrifty Group. With the exception of Hertz, each of these ownership groups resulted from the merger of two or more major rental brands.

EV Transport operates in the independent portion of the rental industry, comprising just seven percent of the whole, yet generating annual revenues of over one-and-a-half billion dollars

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Avis Budget (NYSE:CAR) and Rental Agencies All Fall Travel volume has dropped along with consumer spending and consumer sentiment over the past several months. And Avis Budget Group suffered from the decline in travel losing $1 billion dollars and having to cut 700 jobs in the most recent quarter preliminarily reported last night. Revised Outlook The company now expects to see ...