Avis Budget headed for steepest two-day fall after record rally

Shares of car rental firm Avis Budget CAR.O fall 44.4% to $247 - on track for their steepest two-day percentage decline - after a record rally earlier this week

CAR was halted for trading multiple times on Thursday due to high volatility

Shares of the highly shorted, tightly-controlled company surged to a record close of $713.97 on Tuesday, triggered by a massive short squeeze in its shares

J.P. Morgan downgraded the stock to "underweight" from "neutral" on Thursday, saying shares have "risen far above the level we feel can be justified by even the most optimistic view of underlying earnings fundamentals"

JPM analysts expect the company to issue new shares following its earnings report on April 29

Brokerage raises PT to $165 from $123, expecting the company to capitalize on the recent rally via the issuance of new equity to retire debt

More than 80% of CAR's free float were shorted as of Tuesday, according to Ortex and the top two stakeholders - SRS Investment Management and Pentwater Capital Management - held over 70% of the stake

Stock up 96% YTD