Avis shouldn't be overlooked in the rental car space, according to Morgan Stanley. Analyst Adam Jonas upgraded the budget rental car company to overweight from equal rate and hiked his price target to $230 from $182. Jonas' new target implies the stock could rise 12.6% in the next year. "With the backdrop of normalization in the rental industry, we look for operational execution to preserve what could now be a higher floor for the industry," Jonas said in a note to clients Tuesday. But even in this environment, he said both companies should have a new floor given the structural changes seen in the rent industry, with Avis' floor being relatively higher.

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Persons: Avis shouldn't, Morgan Stanley, Adam Jonas, Jonas, Avis, Hertz, — CNBC's Michael Bloom Organizations: Avis, Hertz Locations: Friday's