JP Morgan raises Avis Budget Gr price target to $170

JP Morgan analyst Rajat Gupta has maintained an Underweight rating on Avis Budget Gr (NASDAQ: CAR) while raising the price target to $170 from $155. The revised target indicates a shift in valuation expectations despite the continued cautious stance on the stock.

Rating and Target Adjustment

The brokerage firm's decision to raise the price target comes alongside the retention of the Underweight rating. This suggests that while the stock's potential upside has been reassessed, the overall outlook remains below market expectations.

Metric	Previous Value	New Value
Rating	Underweight	Underweight
Price Target	$155	$170

The price target increase highlights a specific adjustment in the firm's financial model, though the underlying rationale for maintaining the Underweight stance was not detailed in the disclosure.

Avis Budget Group, Inc. has agreed to settle its pending lawsuit against Pentwater Capital Management LP and certain affiliated persons for the recovery of short-swing profits under Section 16(b) of the Securities Exchange Act of 1934. The settlement, dated June 19, 2026, involves a payment of $650,000,000 in cash to Avis Budget Group, resolving the Section 16(b) Action.

The Settlement and Release Agreement stipulates that the payment is contingent upon court approval. This includes an order affirming that the settlement terms are fair, reasonable, and adequate, and that the Company has diligently pursued the claims raised in the lawsuit. Other customary conditions must also be met before the funds are disbursed.

Key Terms of the Settlement

Detail	Description
Settlement Amount	$650,000,000 in cash
Counterparty	Pentwater Capital Management LP and affiliated persons
Legal Basis	Section 16(b) of the Securities Exchange Act of 1934
Condition	Subject to court approval and customary conditions

The resolution of this litigation removes a significant legal uncertainty for Avis Budget Group, allowing the company to focus on its core operations. The court's finding on the diligence of the claims and the fairness of the amount will be the final step required to finalize the agreement.