CAR – Market expectations are for a strong rebound in Uniform ROA, as management is confident in their new DFP strategy though concerned about international markets

• Avis Budget Group (CAR:USA)currently trades near historical averages relative to UAFRS-based (Uniform) Earnings, with a 26.0x Uniform P/E. Markets are optimistic for a recovery in the company’s returns. Similarly, management is confident about their strategies and share buybacks, though they are concerned about competition and market outlook
• Management is confident that their new DFP (Demand Fleet pricing) system will yield strong results. Additionally, management is confident in the potential for a share repurchase in this fiscal year. However, management may have concerns about increased competition from P2P ride sharing services and OTA (Online Travel Agents) around insurance, as well as in the effectiveness of their Connected Cars fleet. Finally, management may be downplaying concerns about international headwinds