Avis Budget Group stock plunged nearly 12 percent in midday trading Tuesday after reporting rising costs for its fleet of automobiles.
The car rental company
MKM Partners remained optimistic despite the lackluster results, saying "the outlook for fleet costs is more sanguine" looking into 2018.
"Hurricane headwinds in the third quarter should not mask improvement in underlying trends," MKM analyst Christopher Agnew wrote in a note Tuesday."
While Agnew noted that the costs from hurricanes battering the southeast were greater than expected, he says "the market should and ultimately will look through noise from the storms."
"We believe the strength in underlying trends are more important going forward," Agnew added.
Avis lowered the higher end of its revenue forecast by $50 million for 2017, saying it now expects to generate between $8.9 billion and $8.8 billion.