Avis shares up 96.8% since March 20 as short squeeze
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- Deutsche Bank lowered its rating on Avis to hold from buy, emphasizing the downgrade is purely fundamental and not a sell recommendation.
- Avis shares have risen 96.8% since the March 20 close at $99.90, with a 3.3% gain in recent Monday trading.
- Pentwater Capital Management filed a Form 3 on Feb 24 showing put options at $110‑$150 and call options at $150‑$310 expiring March 20, and bought Avis stock on March 18‑19 at $110‑$130.
- Short interest in Avis stands at 23.5% of the public float, higher than the 21.3% for AMC and 15.8% for GameStop during their meme‑stock rallies.
- FactSet’s eight analysts covering Avis include six neutrals, one bullish, and one bearish; Chris Woronka’s $128 price target implies a 34.9% downside from current levels.
- Short squeeze dynamics could force short sellers to cover as prices rise, potentially driving further buying pressure.
Why it matters: Investors holding Avis shares stand to gain from a potential short‑squeeze‑driven price surge, while short sellers could be forced to buy back at higher levels, amplifying buying pressure; the high short‑interest of 23.5% makes the rally especially volatile despite the bank’s fundamental downgrade.
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