Avis Budget Group (NASDAQ:CAR) Faces Price Target Cut Amidst Stock Manipulation Lawsuit

• Avis Budget Group (NASDAQ:CAR) recently saw its price target reduced by Morgan Stanley analysts, reflecting a cautious outlook on the vehicle rental stock.
• The company is embroiled in a class-action lawsuit against major investor Pentwater Capital Management LP, alleging stock price manipulation.
• The lawsuit highlights extreme stock volatility, including a significant price drop after alleged artificial inflation, impacting investor confidence.

Avis Budget Group (NASDAQ:CAR) is a global provider of vehicle rental and car-sharing services. The company operates well-known brands like Avis and Budget, competing with firms such as Hertz and Enterprise. It currently holds a market capitalization, which is the total value of all its shares, of approximately $4.48 billion.

On September 11, 2026, Morgan Stanley analyst Andrew Percoco reduced the price target for CAR to $95 from the previous $99. A price target is an analyst's projection of a stock's future price. At the time, the stock was trading at $126.74 per share, significantly above the new target.

This analyst revision comes as the company is involved in legal proceedings. A class-action lawsuit has been filed against Pentwater Capital Management LP, a major investor. The lawsuit alleges that Pentwater and its CEO violated securities laws by manipulating the price of CAR's stock for their own benefit.

As highlighted by SueWallSt, the lawsuit claims Pentwater artificially inflated the stock's price by over 400%. After the price increase, Pentwater allegedly sold 4.3 million shares. This action is linked to a period of extreme price changes, where the stock fell 74.51% from its high by April 21, 2026.

Currently, CAR shares trade at $126.74, with a daily trading volume of 341,455 shares. The stock's 52-week range, fluctuating between a high of $847.70 and a low of $85.96, shows the significant volatility the stock has faced over the past year.