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Avis Rallies To New High, But There's Reason To Be Cautious

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Car rental company Avis Budget Group (NASDAQ: CAR) has overcome plenty of doubts from investors and analysts, as well as a downturn in business during the pandemic.

The stock is trading in new high ground after clearing a cup-with-handle base in August.

On October 13, Morgan Stanley downgraded the stock to underweight from equal weight, according to MarketBeat data. Analyst Billy Kovanis said investors had gotten too giddy about Avis' business outlook.

Nonetheless, investors shook off Morgan Stanley's concerns, with the stock rallying more than 4% on Monday, to a new all-time high. '

Even with his downgrade, Morgan Stanley's Kovanis lifted his price target from $85.00 to $110.00.

Already the stock had been on a tear. After notching a small gain in 2020, Avis is up 304.75% year-to-date.

Clearly, investors have been optimistic about Avis' prospects post-pandemic.

Selling Off Fleets

Back in the spring of 2020, as Covid........

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