NEW YORK (TheStreet) --Shares of Avis Budget Group (CAR) are higher by 8.73% to $55.53 on heavy volume in early afternoon trading on Friday, after the rental car and car sharing services company's competitor Hertz Global (HTZ) said it's raising its prices by as much as $5 per day in June as it is expecting a busy travel season this summer, Bloomberg reports.
Beginning June 14 Hertz will raise its prices $20 as week at airports and $10 a week in its neighborhood locations as it anticipates "strong seasonal demand."
"What was a positive surprise was the price increase and the commentary around capacity discipline, targeting fleet growth less than demand," analyst Chris Agnew with MKM Holdings told Bloomberg.
Based in New Jersey, Avis Budget operates under the Avis, Budget, and Zipcar brands with additional brands Budget Truck, Payless, and Apex and does business in North America and internationally.
Separately, TheStreet Ratings team rates AVIS BUDGET GROUP INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AVIS BUDGET GROUP INC (CAR) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."