After a terrible second half last year, shares of Avis Budget Group and other rental car companies are on the road to recovery, Avondale Partners analyst Fred Lowrance told CNBC Friday.
“What we’ve seen so far this year for Avis and others in the space is we’re getting a favorable multiple correction,” he said.
The stocks have go so cheap at the second half of 2011 that investors are looking at a story like Avis as a bargain, considering its high earnings, Lowrance said. “There’s plenty of runway on the stock,” he added.