Morgan Stanley analyst upgrades Avis Budget to buy for the first time, sees 65% upside

A customer waits for his car at the garage of Avis Budget Group at the San Francisco airport.
David Paul Morris | Bloomberg | Getty Images

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Shares of rental car company Avis Budget Group jumped in premarket trading after Morgan Stanley upgraded the stock and raised its price target by nearly 50%. 

The new note, from auto analyst Adam Jonas, said that the used car market is recovering quicker than expected, which would help the financial outlook for Avis Budget.