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Avis's stock tumbles to pace Dow transports' losers after bearish Morgan Stanley call

Shares of Avis Budget Group Inc. CAR, -Nine.62% sank Nine.4% toward a seven-month low in afternoon industry Tuesday, sufficient to pace the Dow Jones Transportation Average's DJT, -0.27% decliners, after Morgan Stanley resumed protection of the rental automobile corporate with a bearish underweight score. Analyst Adam Jones set a $30 inventory worth goal, which suggests an extra 14% decline from present stages. He additionally reiterated his underweight score on Avis rival Hertz Global Holdings Inc. HTZ, -11.20% whilst elevating his worth goal to $15--11% beneath present levels--from $13. Hertz's inventory plunged 11% in afternoon industry. "Both Avis and Hertz employ large degrees of financial leverage and are heavily dependent on the used car market and credit environment," Jones wrote in a notice to purchasers. "We believe that rising off-lease supply and increased tech penetration in new vehicles provide downward pressure to used car prices at what is already a late point in the cycle." Avis's inventory has tumbled 26% during the last three months, whilst Hertz stocks have shed 16%, the Dow transports have won 1.2% and the Dow Jones Industrial Average DJIA, +0.28% has tacked on 0.five%.