BancBoston Gives Strong Quarter Outlook for Rental Car Group
9 April 1999
BancBoston Robertson Stephens Gives Strong Quarter Outlook for Rental Car Group
SAN FRANCISCO, April 8 -- The following is being issued by
BancBoston Robertson Stephens, a member of the National Association of
Securities Dealers, CRD number 41271:
BancBoston Robertson Stephens senior automobile services analyst Jordan
Hymowitz today gave a strong quarter outlook for the rental car group,
including Hertz (NYSE: HRZ, rated Buy), Avis (NYSE: AVI, rated Buy) and Dollar
Thrifty (NYSE: DTG, rated Buy).
"Avis, Hertz and Dollar Thrifty should all report excellent earnings.
Avis is our favorite rental car stock at current price levels," said Hymowitz.
"Budget is slowly moving up prices, leaving only Alamo and National as price
laggards. Hertz -- the premier brand -- continues to gain market share."
"Critics of rental car stocks claim they should be valued as airlines
(10-11 times earnings per share), and that earnings would decline when price
increases stopped. However, this quarter, with less than 1 percent price
increases, estimates will be substantially in excess of expectations," said
Hymowitz. "Thus, the rental car companies' claim that they can attain
earnings in various price environments has gained credibility."
Clients interested in receiving more information should contact their
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